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IN FOCUS
- Roll-ups getting an AI makeover
- Human agents still beating AI bots at call centers
- ChatGPT Agent’s launch ruffles feathers in agentic AI space
Hi there,
Every time I hear the word “roll-up,” my mind wanders to egg rolls – or more specifically, the glorious kathi rolls from India. With its crispy, flaky parathas stuffed with spicy meat, crunchy veggies, tangy chutneys, and ketchup, every bite feels like a celebration. But let’s be honest, they are not exactly healthy.
Which brings me to the startup roll-up trend. It kind of feels the same – looks great on the outside, but is it good for a startup (or its cap table)?
After writing about the rise and fall of ecommerce roll-ups, we started spotting a new flavor of the same idea, this time in AI. Instead of consumer brands, AI startups are rolling up traditional service firms and layering in artificial intelligence to automate, optimize, and hopefully 10x their margins.
Sounds slick. But will it actually work?
In our first Big Story of the week, I dig into the anatomy of the AI roll-up strategy: what’s promising, what’s deja vu from the ecommerce model, and where the real risks lie. Is this just another tempting roll that’s hard to digest? Or is this the version of AI that finally delivers the scale VCs dream about?
In our second Big Story, my colleague Scott takes us to the call center world. Everyone said AI would take over call centers by being cheaper, faster, and tireless. But when Scott crunched the actual numbers, the hype didn’t quite hold up.
Speaking of hype, there’s a lot of it in the agentic AI world right now thanks to OpenAI. In this week’s Hot Take, I explore the ins and outs of the newly launched ChatGPT Agent.
THE BIG STORIES
1️⃣ AI reboots roll-ups, but can it fix the model?
Image credit: Timmy Loen
Startups like Singapore’s Multiplier Holdings are buying traditional service firms and boosting profits by adding AI. The model is spreading, but is this true innovation or just old roll-ups with an AI twist?
2️⃣ Call center apocalypse fails as flesh beats AI economics
THE HOT TAKE
DEEP READS
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