Silicon Valley VC firm Mayfield is placing a $100 million bet on AI “teammates” revolutionizing labor-heavy industries like law, consulting, and accounting.

Managing director Navin Chaddha predicts AI-powered startups will soon offer services with software-level profit margins, aiming to serve small businesses priced out of traditional knowledge work.

Instead of competing with giants like McKinsey or Accenture, Chaddha advises targeting the 100 million underserved companies globally that need scalable, event-based, AI-led services.

Early results from AI consulting startup Gruve, which tripled its revenue in six months using outcome-based pricing, suggest this strategy may already be paying off.

AI isn’t replacing humans entirely—just doing the boring, repetitive stuff—while humans handle exceptions and negotiate deals.

Still, incumbents face a classic innovator’s dilemma: they’re addicted to high-margin, predictable billing and terrified of switching to utility-style revenue models.

Chaddha believes the real disruption will come in a decade, when today’s scrappy AI-first players begin eating away at the consulting giants’ turf.

In the meantime, Silicon Valley is busy rebranding layoffs as “productivity gains” and pretending AI teammates are here to help—not replace—you.

And while AI-fueled valuations look increasingly unhinged, Chaddha warns that most investors are winging it and 80% will still lose money trying to look smart.