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AI is revolutionizing the software industry by dramatically lowering development costs. This shift is empowering independent creators and small teams to rival tech giants with innovative, personalized software experiences.
By Ed Landon
10.15.2024
Summary
The software industry is on the cusp of a transformation, mirroring the recent history of digital media. Just as digital platforms lowered barriers to content creation, unleashing a wave of independent creators once dismissed but now rivaling traditional media, AI is dramatically reducing the cost of software development. This shift is leading us to an era where millions of independent developers and small teams will create software experiences that will creep into the domain of established tech giants. Software is becoming like Content.
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From Izakayas to Software
You're surrounded by cozy 8-seater izakayas and intimate ramen shops. These are places where genuine connections flourish, embodying hospitality at its finest. Now, contrast this with Applebees - a vastly different experience (no further description needed).
Where does your brand fall on this spectrum of hospitality?
The magic of these intimate Japanese experiences is that once encountered, they slowly become the new expectation. They exist because Japan's environment and economics make them feasible. In pricier cities, such experiences are often absent for the same reason.
But let’s extend this analogy to software now. With the costs to produce software plummeting, it’s introducing new economics and with that, a new environment that allows for personalized, hospital and cozy experiences to be created. It’s going to get wild. Let’s dive in.
02
how did we get here?
Tech revolutions often ignite when costs plummet, and we're on the cusp of that moment. We're entering an era where anyone can breathe life into their software dreams by simply describing their vision to AI.
Lower costs means more market entrants. And because costs are so low, folks will be more willing to experiment and take risks. We believe that this will lead to hyper-personalized, community-driven experiences. Picture apps so tailored, it's like your closest friend designed them just for your inner circle.
We've seen this pattern before with media. As costs of production and distribution plummeted, a new era of personalized content emerged. Just a decade ago, we consumed mass media; now, YouTubers and TikTokers craft content that feels tailor-made for us. There's a creator for every niche and interest, turning our feeds into personalized channels. This shift forced traditional media giants to rethink their entire approach, moving from broad appeal to targeted experiences.
The same is happening with tech. Software is becoming like content. Independent developers, designers, visionaries, and small teams will create products that compete with the tech giants of our time.
And even if they aren’t competing, these “handcrafted” pieces of software will completely change what users come to expect.
For brands, this shift presents a massive opportunity. The window to adapt and innovate is open, but it won’t stay open forever.
03
The New Economics of Software
The rising competition, the increased diversity in software, the heightened user expectations - it’s all leading brands to a critical juncture. You must go far beyond simply offering utility. As a brand, you must find your tribe, understand their specific needs, values, and goals and create communal experiences they can connect and resonate in.
This is the new moat. By resonating with niche communities, you crack distribution (because your brand means something within their circles), you gain a vantage point into their lives that help push your tech further, and you create meaning within their identity that makes you irreplaceable when faceless AI prompts try to serve your users.
This is the way.
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