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AI’s Impact on Employment: Insights from Tech Investor Victor Lazarte
As discussions around artificial intelligence (AI) evolve, some tech investors are openly predicting significant transformations in the job market. Victor Lazarte, a prominent figure in venture capital from Benchmark, recently expressed strong views on AI’s growing capabilities and its implications for employment, particularly within the legal and recruiting sectors.
During a recent podcast episode of “The Twenty Minute VC,” Lazarte critiqued the prevailing narrative among big tech companies, which often emphasizes AI as a tool for enhancing human work rather than replacing it. “It’s bulls—t,” he asserted, emphasizing that AI is already taking over roles traditionally held by people.
According to Lazarte, two professions should be particularly alert to these changes: lawyers and recruiters. He predicts that in the next three years, AI technologies will streamline and handle much of the foundational work that has historically fallen to new law graduates. On the recruiting front, he anticipates that AI will conduct interviews with candidates, marking a significant shift in the hiring process.
“There’s not going to be that many things,” he said, reflecting on the expansive abilities of AI.
The legal sector is already witnessing the integration of AI tools. For instance, legal tech startup Libra has recently introduced updates to its AI, assisting over 3,000 lawyers and 150 law firms in a range of legal tasks, from research to document review. Furthermore, a report by the American Bar Association highlighted AI tools such as Claude, ChatGPT, Gemini, and Copilot as essential resources for legal professionals in 2024.
Recent studies underscore the beneficial role of AI in legal education and practice. A study from the University of Michigan Law School found that the incorporation of AI significantly improved students’ legal analyses, with participants reporting enhancements in their work quality by as much as 28%.
As the legal industry adapts, a Thomson Reuters study conducted in July 2024 revealed that law firms view AI as their top strategic priority. This growing reliance on intelligent systems signals a paradigm shift within professional practices.
In the recruitment space, AI is increasingly automating the hiring process. Research indicates that 99% of Fortune 500 companies now utilize AI for applicant screening, extending beyond the initial application phase. A survey by Resume Builder projected that by 2024, over 40% of companies would use AI technologies to conduct candidate interviews, a development that has taken many applicants by surprise.
New startups are entering the AI recruiting arena, with companies like OptimHire raising $5 million in seed funding to enhance candidate sourcing and scheduling. Additionally, ConverzAI secured $16 million in Series A funding to develop virtual recruitment solutions, while Mercor, another AI-driven startup, raised an impressive $100 million, aiming to refine resume screening and candidate matching processes.
Lazarte emphasizes that while AI may replace certain jobs, it also harbors the potential to drive innovation and create new business opportunities. He believes that this technological shift could lead to the emergence of trillion-dollar enterprises operated by smaller teams, reshaping the corporate landscape.
Benchmark’s diverse portfolio includes backing for a variety of successful companies, such as Asana, Snap, and Uber, underscoring the venture capital firm’s commitment to supporting transformative technologies in the evolving market.
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