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Noahpinion ·Future-gazing

Will AI Make Companies Outsource More, or Less?

by Noah Smith

Published 2026-06-29 09:16:02+00:00

If technology makes it easier to work alone, why might companies end up growing larger?

0:00 / 13:51 · Narrator Algieba

Context

Published on 29 June 2026, this piece examines the tension between the rise of the solopreneur and the enduring logic of the large corporation. While AI tools allow individuals to act as their own departments, the essay considers whether the cost of verifying trust in an automated world might actually push the economy back toward massive, centralized firms. It applies classic transaction cost theory to a future where the biggest hurdle isn't capability, but the expensive necessity of proving that a digital partner is legitimate.

Show notes

An analysis of the competing pressures artificial intelligence exerts on corporate outsourcing and the rise of solopreneurship. Applying transaction cost theory to current technological trends, it considers whether AI will lower barriers for individual business owners or if the risks of automated fraud will necessitate a return to large, vertically integrated firms, ultimately forecasting an economy bifurcated between independent operators and massive corporations.

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