AI Agents Now Cheaper Than Offshore Outsourcing

A partner at Silicon Valley venture firm a16z says AI agents are now ready for real-world use and cost less than offshore workers in India. Tests show the leading model, Claude Fable 5, can complete 85% of everyday computer tasks, beating the human average of 72%.

These agents work best for tasks with clear steps, like updating records or handling IT tickets. One consumer goods platform runs 15 to 20 million automated interactions monthly and cut its maintenance team in half. A global IT services firm uses 27 live workflows to process up to 2,100 tickets daily.

Cost-wise, AI agents run about $6-8 per hour, compared to $10 for offshore workers in India and $30-45 for U.S. back-office staff. The partner notes these are rough estimates, and smart setups save more by using cheaper code for routine steps.