Joe Gerber

The net effect is not a simple shift toward bigger or smaller firms, but a redefinition of the firm itself: boundaries become more fluid, coordination becomes programmable, and the classical tradeoff between hierarchy and market increasingly gives way to systems that can dynamically internalize or externalize work at near‐zero friction

Outside the firm, agents reduce external transaction costs by making it easier to discover, contract with, and monitor external partners, which pushes in the opposite direction toward more modular, plug‐and‐play relationships rather than monolithic, vertically integrated organizations.

AI agents will reshape the Coasean boundary by directly minimizing coordination costs. Inside the firm, with regards to internal transaction costs, they automate search and summarization, structure handoffs, and perform continuous checks against rules and metrics, thereby lowering and flattening the marginal cost of organizing work and mitigating... See more

In this regime, the product becomes the mechanism for data capture, and the data becomes the product

achieving models capable of automating that work will depend on first capturing how experts do it