VC Mike Ghaffary on the Future of AI Startups

The Rise of AI Agents and the Future of Work

A significant push is underway in Silicon Valley to develop AI agents designed to enhance human capabilities in the workplace. Should these agents function as anticipated, a substantial number of jobs could face obsolescence, or at least significant reduction in demand.

Positions potentially impacted by this technological shift include customer service representatives, sales associates, executive assistants, IT administrators, junior developers, and even journalists. The automation extends to areas previously reliant on human connection, as exemplified by Boardy, an AI startup that automates networking and introductions, even replacing the role of a venture capitalist.

The Promise of New Jobs

When questioned regarding the potential for job displacement caused by their technologies, founders and investors consistently respond that while some roles will be eliminated, new opportunities will emerge.

However, ensuring this outcome has become a primary focus for venture capitalist Mike Ghaffary. He is widely recognized for his previous roles as a general partner at Canvas Ventures and earlier at Social Capital.

Ghaffary's Move to Burst Capital

Ghaffary’s investment portfolio includes prominent companies such as Superhuman, Strava, Faire, Optimizely, and CloudKitchens.

On Friday, Ghaffary exclusively revealed to TechCrunch his departure from Canvas to join Burst Capital, a venture capital firm established in 2017 by former Yelp executives.

Geoff Donaker, former Yelp COO, leads Burst Capital. Notably, Ghaffary and Donaker have a prior working relationship from their time at Yelp.

Focus on Middle-Class Job Creation

At Burst, Ghaffary intends to invest in companies that not only generate employment but specifically create well-compensated, middle-class jobs.

His focus is on opportunities for individuals who do not possess advanced degrees in AI and machine learning. “We’re actively addressing the issue of job displacement,” he stated to TechCrunch.

He critiques the common response of “don’t worry, AI will create jobs too,” arguing that tech companies have a responsibility to proactively build those promised new roles.

Supporting Small Businesses

Ghaffary identifies companies supporting small business owners as a key area for job creation.

Examples include Owner.com, which provides marketing assistance to local restaurants, and GlossGenius, offering all-in-one booking and payment solutions for hairdressers.

His portfolio also includes ResQ, a company that connects restaurants and hospitality businesses with qualified repair technicians.

The Need for AI-Powered Vocational Training

Ghaffary highlights a significant gap in the market: the lack of startups utilizing AI to create high-paying jobs.

He specifically seeks companies focused on vocational training. He envisions startups leveraging AI to facilitate learning in skilled trades like industrial electrician work or commercial plumbing.

“AI could play a crucial role here,” he explains, advocating for affordable, AI-enhanced training programs – “almost like flight simulation” – for the millions potentially displaced by automation.

He believes this represents a substantial opportunity, essential for the well-being of both the nation and the world, preventing a large-scale underemployment crisis.