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Tom Blomfield, Y Combinator partner, argues replacing workforces with AI fails because structuring human domain knowledge is too difficult

He likens context-poor AI to hires lacking company context.

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Original post

Imagine replacing 90% of your employees with a team of geniuses who have no idea how your company operates. Total chaos. Nothing works. That’s what AI feels like today. The missing piece is extracting all the domain knowledge from people’s heads and providing that as structured context to the models.

12:31 PM · May 30, 2026 View on X
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@t_blom This problem will naturally tend to go away as companies are grown from the start using AI. Then you don't need to extract any domain knowledge from people's heads; it will never have been in people's heads.

Tom BlomfieldTom Blomfield@t_blom

Imagine replacing 90% of your employees with a team of geniuses who have no idea how your company operates. Total chaos. Nothing works. That’s what AI feels like today. The missing piece is extracting all the domain knowledge from people’s heads and providing that as structured context to the models.

7:31 PM · May 30, 2026 · 185.9K Views
8:53 PM · May 30, 2026 · 64.3K Views

@paulg @t_blom erm... this would only work because it's been extracted from other people's heads at other companies

Paul GrahamPaul Graham@paulg

@t_blom This problem will naturally tend to go away as companies are grown from the start using AI. Then you don't need to extract any domain knowledge from people's heads; it will never have been in people's heads.

8:53 PM · May 30, 2026 · 64.3K Views
12:14 AM · May 31, 2026 · 470 Views

@paulg @t_blom unless you're suggesting your accountant AI re-learns how to do accounting from scratch in a company via RLHF

⿻ Andrew Trask⿻ Andrew Trask@iamtrask

@paulg @t_blom erm... this would only work because it's been extracted from other people's heads at other companies

12:14 AM · May 31, 2026 · 470 Views
12:15 AM · May 31, 2026 · 27 Views

@paulg @t_blom But the important information is discovered while operating the company. How will the company operate if the AIs don't know how to run it?

Paul GrahamPaul Graham@paulg

@t_blom This problem will naturally tend to go away as companies are grown from the start using AI. Then you don't need to extract any domain knowledge from people's heads; it will never have been in people's heads.

8:53 PM · May 30, 2026 · 64.3K Views
11:23 PM · May 30, 2026 · 314 Views

@paulg @t_blom It seems like there's a last-mile problem here. The tacit knowledge that is in the heads of employees was discovered through operating the company. How does AI extract that without operating the company itself?

11:24 PM · May 30, 2026 · 74 Views

Imagine replacing the CEO first so that a company can kickstart becoming an AI-native company.

Tom BlomfieldTom Blomfield@t_blom

Imagine replacing 90% of your employees with a team of geniuses who have no idea how your company operates. Total chaos. Nothing works. That’s what AI feels like today. The missing piece is extracting all the domain knowledge from people’s heads and providing that as structured context to the models.

7:31 PM · May 30, 2026 · 185.9K Views
11:40 PM · May 30, 2026 · 1K Views
Tom Blomfield, Y Combinator partner, argues replacing workforces with AI fails because structuring human domain knowledge is too difficult · Digg