AI Rewrites Firm Boundaries

When AI makes general knowledge cheap but transactions also cheaper, firms will reorganize: some specialized tasks may be absorbed internally because clients can apply model outputs directly, while other rare, verification‑heavy expertise will remain concentrated in firms. The balance of cheaper knowledge (models) versus cheaper transactions (platforms, marketplaces) will reconfigure which activities stay inside firms, which are outsourced, and the bargaining power of specialists. — If true, this changes labor markets, bargaining power, business models, and regulatory priorities (taxes, antitrust, worker protections) across the economy.