Jobs that are being outsourced to low-wage countries signal strong opportunities for startups, especially in the current era.

AI tools are now good enough to create human-simulating applications, and platforms like SMS and email are becoming more open, presenting new opportunities for startups.

Cheap labor is a crutch that inhibits innovation, as companies may opt for lower costs instead of investing in new technologies and processes, while outsourcing factories led to cheaper goods but devalued American workers and increased dependence on adversarial trade partners like China.

Countries that imported large amounts of cheap labor have seen productivity stagnate, indicating a direct connection between cheap labor and economic performance.

Call centers will become obsolete in the next five to ten years as generative AI improves, leading businesses to shift communication to email and messaging platforms.

The current business model of BPOs relies heavily on human labor, making it challenging for them to transition to AI-driven processes without significant shifts in their operations.

Lilac Labs is automating the drive-thru order-taking process, addressing inefficiencies caused by outsourcing these jobs to low-wage countries.

Innovation in the absence of cheap labor is beneficial; companies should focus on building new things rather than just seeking cheaper labor.

If you're selling a low-cost product, you need to consider a low-touch sales model, as high-touch methods become impractical when you have to reach millions of customers.