Grove Ventures’ Lotan Levkowitz on “Service as Software”: How AI Is Transforming the $4 Trillion Services Industry
From call centers to consulting firms, artificial intelligence is replacing billable hours with software-driven solutions.
The Beginning of a Revolution
In a recent interview with CTech by Calcalist, Lotan Levkowitz shared his perspective on how AI is reshaping the $4 trillion global services industry, a transformation he calls “the beginning of a revolution.”
From customer support and compliance to HR and financial operations, artificial intelligence is fundamentally changing how work gets done, replacing human service providers with intelligent, scalable software.
“We’re seeing the transition from service companies—people who sold hours of work—to software that replaces them,” Levkowitz told CTech. “This will affect even the most prestigious professions.”
From SaaS to Service as Software
For the past two decades, Software-as-a-Service (SaaS) has redefined industries ranging from marketing to infrastructure. But consulting, one of the world’s last multi-trillion-dollar service markets, remained resistant to automation, until now.
“Generative AI enables personalization at scale,” Levkowitz explained. “Suddenly, customers can choose from a menu of options and, instead of paying consultants by the hour, receive a software-driven solution.”
This new paradigm — Service as Software — marks a shift that spans the entire spectrum of the services market: from $5 Fiverr gigs to Harvard-educated McKinsey consultants. Routine tasks such as customer support are quickly being automated, while roles requiring complex judgment or emotional intelligence may evolve more gradually.
Israel’s Emerging Leadership in AI-Driven Services
Over the past two years, Israeli startups have raised more than $1.5 billion across 40+ companies building AI solutions for the services sector. These include platforms for customer interaction, HR automation, compliance intelligence, and financial operations — all redefining how organizations deliver value and scale their expertise.
“The shift from human providers to intelligent software is creating an enormous entrepreneurial opportunity,” said Levkowitz. “Israel’s innovation ecosystem, with its technical depth and problem-solving DNA, is uniquely positioned to lead this transformation.”
At Grove Ventures, this evolution aligns closely with the firm’s investment thesis: supporting the next generation of infrastructure and AI companies that enable automation, personalization, and intelligence at scale.
Read the Full Interview
To explore the full discussion on how AI is redefining the service economy,
Read the full article on CTech by Calcalist.