The A16z GP said that software stocks have been completely oversold. Harry Murphy/Sportsfile for Collision via Getty Images
Anish Acharya says it is not worth it to use AI-assisted coding for all business functions.
AI should focus on core business development, not rebuilding enterprise software.
The A16z partner added that software stocks that took a beating last week were oversold.
Vibe coding everything is just not worth it, says an Andressen Horowitz partner.
On an episode of the "20VC" podcast released on Monday, A16z general partner Anish Acharya said that companies shouldn't use AI-assisted coding for every part of their business.
He said that software accounts for 8% to 12% of a company's expenses, so using vibe coding to build the company's resource planning or payroll tools would only save about 10%. Relying on AI to write code also carries risks, he said.
"You have this innovation bazooka with these models. Why would you point it at rebuilding payroll or ERP or CRM," Acharya said, referring to enterprise resource planning and customer relationship management software. Salesforce, Microsoft, Oracle, and SAP are among the top providers of such software.
Instead, companies are better off using AI to develop their core businesses or optimize the remaining 90% of their costs, said the venture capitalist of six years.
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