Andreessen Horowitz partner: AI will create new industries

David George, a general partner at Andreessen Horowitz, wrote in a blog post Wednesday that artificial intelligence will reorganize labor markets and create new industries rather than produce lasting mass unemployment. He rejected the idea that the total amount of work in the economy is fixed, calling that the “lump-of-labor” fallacy.

George cited historical shifts in employment after mechanization, saying higher farm output did not leave workers permanently unemployed but moved them into factories, shops, hospitals and offices. “If automation caused permanent unemployment, the tractor should have broken the labor market forever,” he wrote.

He acknowledged that some occupations are likely to shrink as AI improves. George noted U.S. Bureau of Labor Statistics projections that customer service representatives and medical transcriptionists will decline and referenced data showing entry-level job postings in the United States have fallen by about 35% over the last two years amid growing automation.

At the same time, George pointed to hiring and wage data that show growth in software development and systems-design roles since early 2025. He wrote that AI often augments engineers’ work and can increase demand for technical roles.

The post placed George’s view alongside a range of industry forecasts. Some technology leaders have warned that AI could reduce demand for certain white-collar jobs. Microsoft’s AI chief has predicted many white-collar tasks could be automated within a short time frame. Other executives have suggested AI could lead to new industries and forms of employment. OpenAI’s chief criticized fear-based messaging about AI job loss and safety risks.

George wrote that AI-driven productivity could expand markets and create new firms and industries. “The future is cheaper intelligence, bigger markets, new firms, new industries, and higher-order human work,” he wrote.

Economists remain divided on whether AI-driven task automation will outpace the creation of new demand and occupations as adoption accelerates. Companies are already using AI to automate office tasks, and policymakers and business leaders continue to debate likely labor outcomes.