Levie argues that enterprise AI products create value through the software around a model: business logic, customer data, integrations, and workflows. Businesses buy outcomes such as resolving support requests or processing contracts, so providers should swap in better models as they improve. He expects model differences to matter less for most business uses over time.
How AI Is Changing Enterprise
Speakers
Aaron Levie, CEO of Box, joins Y Combinator partners Gary, Jared Hargreaves, and Diana on The Light Cone to discuss how AI is changing enterprise software, workflows, and business growth.
Levie expects intelligence costs to approach the underlying cost of computing, making software that applies AI to real business problems more important. He points to opportunities in both industry-specific products and tools that connect AI systems. As tokens become a smaller share of a product's value, the surrounding software can make it more useful and harder to replace.
Levie says major companies are testing AI across many areas, though privacy, compliance, and regulation keep adoption early. He distinguishes context, such as HR and ERP systems that most businesses need, from core capabilities that shape a company's unique value. Businesses may buy common software externally while building proprietary AI for areas such as drug development or personalized services.
Levie compares AI with SaaS, which expanded software markets by making products accessible to many more businesses. He argues AI can add spending by enabling work companies previously left undone, such as translating more advertising or extracting contract details. He estimates software including AI could become five times larger over the next decade, and says companies may reinvest efficiency gains to grow and serve customers.
Levie argues that faster work can lead companies to build better products, grow revenue, and hire in other areas, rather than simply keeping all the savings as profit. He says competition pushes businesses to reinvest efficiency gains, while consumers benefit from better products and lower costs. His closing vision links AI automation to more accessible education and healthcare.
Takeaways
- Sell a complete business outcome, with model choice treated as an implementation detail.
- Map a workflow before deciding whether to build AI software or buy it.
- Look for tasks companies do not perform today, not only labor costs AI could replace.
- Build meaningful software around model output to improve customer fit and retention.
- Use AI productivity gains to expand products and customer value, not just reduce costs.
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What was claimed 9
- role atAaron Levie is co-founder at
Box
“Aaron, you're one of the best product CEOs out there—a public company as well.”
YouTube Verified2 sources· Talk
- feature
Cursor: AI coding product cited as showing developers differences in model output
“You can see this in Cursor with Anthropic: people like that combination.”
YouTube Unverified1 source· Talk
- feature
OpenAI: AI models power its software“It's very clearly a software company at this point, with AI models powering its underlying software.”
YouTube Unverified1 source· Talk
- feature
Anthropic: Enterprise API business offers security, compliance, governance, privacy, uptime, SLAs, and account management
“You're really paying for security, compliance, governance, privacy, uptime, SLAs, and talking to somebody who manages your account.”
YouTube Unverified1 source· Talk
- feature
Meta: Open-sources frontier models
“Meta creating a counterbalance by open-sourcing a frontier model.”
YouTube Unverified1 source· Talk
- metric
Box: Nearly 1,000 engineers
“But we have nearly a thousand engineers at Box.”
YouTube Unverified1 source· Talk
- metric
Box: 81% gross margin
“Right now, we publicly have an 81% gross margin.”
YouTube Unverified1 source· Talk
- feature
Box: AI feature lets employees ask questions using HR data and internal knowledge
“We have a feature that lets them talk to all our HR data and internal knowledge.”
YouTube Unverified1 source· Talk









