Generative AI, with its coding capabilities, is making it easier to develop software and could disrupt the way software is created, distributed, and used. This potential framework for software describes a future where generative AI and humans work together to customize tooling and even create entire applications. This outcome would flip the traditional software industry on its head, calling into question the value of SaaS companies in a world where everyday people can build software themselves. However, while this threat exists, the death of traditional SaaS companies still seems far off as there are substantial opportunity costs associated with building your own bespoke software rather than buying from third-party vendors. Nonetheless, generative AI will push established software companies to prove their worth by delivering value.
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