The a16z Show · Thursday, September 10, 2026
Adam Veridian suggests that the Total Addressable Market (TAM) for AI is significantly larger than for traditional software or IT sectors, particularly in areas like healthcare. While healthcare IT spending is around $60-100 billion annually, AI's impact on labor and tasks within healthcare represents a potential trillion-dollar industry.
“Take healthcare. Healthcare spends $60 to $100 billion on healthcare IT per year. But AI is hitting on actual labor and the value of tasks that are being performed in healthcare. That's claims, billing, administration. That's a trillion dollar industry.”
“So the TAM of AI can be 10X plus bigger than traditional SAS or healthcare IT.”
“It's hard to estimate it, but I can tell this for myself, I've been chronically wrong about how big these outcomes can get.”