Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Y Combinator co-founder Paul Graham said AI could turn businesses upside down, but argued that startups may be better positioned than larger companies to navigate the disruption. On Wednesday, Graham said many startup founders are increasingly concerned about AI's impact, adding that he shares their concerns.
"A lot of founders I talk to are worried about what will happen with AI. So am I frankly," he said. However, he argued that founders may have an advantage if AI causes widespread disruption.
"But they're actually better off than anyone else," Graham said. A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why Still Learning the Market?
These 50 Must-Know Terms Can Help You Catch Up Fast Graham said smaller companies can respond more quickly to technological changes because they are less constrained by bureaucracy and established business structures. "If the world is going to get turned upside down, the safest place to be is in a small, fast-moving company that can easily change direction," he said. A lot of founders I talk to are worried about what will happen with AI.
But they're actually better off than anyone else. If the world is going to get turned upside down, the safest place to be is in a small, fast-moving company that can easily change direction. Trending: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big Time AI disruption is already affecting financing decisions and raising concerns about the future of work PitchBook said software's share of new syndicated loans fell from nearly 30% at the end of 2025 to about 9% in 2026, while healthcare, professional services and industrial sectors attracted more capital.
Bill Gates has warned that AI-driven automation could reduce demand for human labor in areas including software development, customer service and warehouse work, while potentially enabling shorter workweeks. Mark Cuban similarly urged business leaders to develop AI expertise, warning that companies that fail to adapt could lose competitiveness as AI transforms hiring, productivity and competition. See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier.
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