@gradypb of Sequoia Capital stated that record system software companies are relatively unaffected by artificial intelligence, but companies building interaction systems on top of these systems face challenges: “The first wave of migration from on-premises to the cloud was primarily focused on record systems—such as Workday, Salesforce, and ServiceNow.” “The second layer on top of that is the interaction system. A record system may have a core database, but many different workflow applications run on top of it.” “I think with the arrival of the AI software wave, we will see a third layer emerge.” “This layer handles the actual work. It deploys various agents. These agents may or may not need the underlying workflows, but they definitely need access to everything within the record system.” Therefore, I think these record system companies are relatively safe. They may not take on many new workloads, as these workloads may flow to AI-native companies. But overall, I think they are quite safe. I think some workflow-based companies in the middle are in a difficult position because they are neither record systems nor the deployed agent capabilities. So, they must find a way to become some kind of agent tool to handle whatever tasks need to be completed.