To become AI-native, a company must redesign its entire structure around agents—not just bolt AI onto existing workflows—rebuild APIs, generate training data through customer-facing deployment, and shift metrics from transactional counts to relational lifetime value.
Ali outlines three critical decisions for AI transformation: redesign the whole company around agents, build superhuman agents through live data feedback loops, and change business metrics from transactional to relational. ✦ AI generated
Ali Massa · a16z Podcast · 2026-08-10 · original ↗
starts at this moment · 5:07
“You had to downsize dramatically. It didn't work for a year. So, do you want to talk through obviously you had to tune a lot of things to make that work.”
So so there there were like three main decisions that that we had to make. The first and this is what where I think many companies are stuck right now is the first instinct is, 'Okay, let's adopt AI.' And you you basically leave your structure as it is and just give ChatGPT or Claude to to your team and then there's no efficiencies. Your customers have the same problems and and nothing happens, right? And so so you need to redesign your whole company around the agents and around the future capabilities. And this means really like rebuilding most of your APIs, rebuilding your system so the agents can use them to to perform. Then, you need to start generating the data and the feedback loops to fine-tune these agents. The only way to really make them work is if you teach them. Like, how do you teach them? You you put them out in the open, you you put them in front of customers, you get that data, you get those evals, and then you train your your your agents. And this is the second bet that we made that that we could build superhuman agents. This means that by every dimension that matters, like conversion, lifetime value, uh customer experience, our agents would outperform the best human we had we had ever hired. And we put them in front of the hardest problems. And and finally, you you start to change how you measure the success of the company. Kavak was a transactional company. We used to measure how many cars we bought, how many cars we sold, how many brakes we we needed to to break pads we needed to buy. Uh and we moved to a relational company where now I have 10 million customers in my database, and I have agents assigned to most of them with the task of maximizing their lifetime value.
verbatim transcript · starts at 5:07
5:07Like describe the harness at that time and like what models you were using and sort of specifically. Yeah. >> So so there there were like three main decisions that that we had to make. The first and this is what where I think many companies are stuck right now is the first instinct is, "Okay, let's adopt AI." And you you basically leave your structure as it is and just give
5:28ChatGPT or Claude to to your team and then there's no efficiencies. Your customers have the same problems and and nothing happens, right? And so so you need to redesign your whole company around the agents and around the future capabilities. And this means really like rebuilding most of your APIs, rebuilding your system so the agents can use them to to perform. Then, you need to start generating the
5:55data and the feedback loops to fine-tune these agents. The only way to really make them work is if you teach them. Like, how do you teach them? You you put them out in the open, you you put them in front of customers, you get that data, you get those evals, and then you train your your your agents. And this is the second bet that we made that that we could build
6:16superhuman agents. This means that by every dimension that matters, like conversion, lifetime value, uh customer experience, our agents would outperform the best human we had we had ever hired. And we put them in front of the hardest problems. And and finally, you you start to change how you measure the success of the company. Cazoo was uh transactional company. We used to measure how many cars we bought, how many cars we sold,
6:43how many brakes we we needed to to break pads we needed to buy. Uh and we moved to a relational company where now I have 10 million customers in my database, and I have agents assigned to most of them with the task of maximizing their lifetime value. Now, we're selling cars and and and personal loans and very high-ticket items. So, just activating 1% of this customer base, it's like hundreds of millions of
7:12of dollars uh if we do it the right way. So, so it's a bet that made sense for us because of our industry, because of the ticket, and because at the end of the day, customers need to build trust with with a company because they're buying a used car. And the way to build trust is to to know them and to and to plan and and nurture
7:33a long-term relationship. >> I like I just wanted to double-click on something, you know, evals over agent demos. Um you probably get pitched a lot of, you know agents and you know it's never been easier to build things like before but um one of the questions is like how do you how do you guys go about evaluating this because not everybody tests them across 90% of the
- ·Redesign entire company structure around agents.
- ·Rebuild APIs to enable agent performance.
- ·Generate training data via customer-facing deployments.
- ·Shift metrics from transactional to relational LTV.
- ·Bolt AI onto workflows yields no efficiencies.
- ·Must rebuild most APIs for agent use.
- ·Focus on future capabilities, not legacy systems.
- ·Build superhuman agents through live feedback loops.
- ·Deploy agents with customers for real-world data.
- ·Agents outperform humans in conversion and LTV.
- ·Measure success by maximizing customer lifetime value.