The excitement around artificial intelligence may be waning as the US tech sector grapples with tariff concerns, but some investors remain deeply invested in the technology. Victor Lazarte, a prominent venture capitalist and former gaming CEO, is one such investor who is ‘charging full steam ahead’ with his AI investments. On the Twenty Minute VC podcast, Lazarte stated that AI is ‘fully replacing people,’ contradicting the more cautious views of other companies that see AI as a tool to augment human capabilities.
Lazarte’s firm, Benchmark, has significant investments in AI startups, including Mercor, an AI-based hiring platform, and Decart, an AI-powered research lab. He specifically highlighted lawyers and HR workers as being at risk of being replaced by AI, advising law students to consider how they can add value beyond what AI can offer in three years’ time. However, Lazarte’s claims are not supported by evidence and appear to be driven by his financial interests in the AI sector.
Current State of AI in Law and Recruiting
Recent incidents have highlighted the limitations and potential pitfalls of AI in legal and recruitment contexts. A New York Supreme Court judge criticized an entrepreneur for attempting to use an AI-generated video as a substitute for a human lawyer, while Michael Cohen, former legal counsel to Trump, faced issues with AI-generated briefs that fabricated case law. Legal professionals, such as law professor Mark Bartholomew, remain skeptical about the readiness of AI for courtroom use, citing concerns about AI’s tendency to prioritize speed over accuracy.
In recruitment, AI models have been criticized for perpetuating racist and misogynistic biases present in their training data. Despite these issues, many companies, including 99% of Fortune 500 firms, are using AI to filter job applicants, with some even exploring AI-powered interviewing tools. This has created a challenging environment for job seekers, particularly those who are not tech-savvy or belong to marginalized groups.
UC Berkeley computer science professor Hany Farid notes that just because a technology is inevitable, it doesn’t mean it should be deployed without careful consideration. As AI continues to evolve, it’s crucial to address its current limitations and biases to ensure its safe and effective integration into various industries.
