As the cost of software development decreases due to AI, the demand for software will likely increase, leading to a scenario where fewer human engineers are needed to meet that demand.

The trend of self-funding is emerging in SaaS, where companies can grow significantly with minimal teams, thanks to AI and low software development costs.

The software industry is poised to grow significantly as AI enables a shift in spending from payroll to software. This means that software will become more useful and integral to business operations.

The trend of AI decreasing the cost of creation is enabling more people to experiment with their ideas, indicating a growing untapped market for coding and app development.

As AI becomes more effective, it will reduce execution friction for businesses, allowing them to focus on their core ideas and streamline operations.

In the future, we may see a shift towards on-demand custom software, where users interact with AI to generate specific code solutions tailored to their needs, resulting in ephemeral programs that solve immediate problems. There will also be a demand for smart individuals who can effectively manage AI coding tools, and if we label them as software engineers, that's acceptable, but the nature of the job will be significantly different.

Most AI applications today, particularly those labeled as AI agents, often have low operational costs due to their reliance on software and LLMs, which are becoming cheaper over time.

The pricing model for AI tools is shifting towards usage-based pricing, making it easier for companies to justify ROI and shorten sales cycles.

In the early 2010s, many software businesses transitioned to the cloud, creating numerous opportunities for founders to replace outdated software. We are currently experiencing a similar moment with AI, where existing software can be rebuilt from scratch to integrate AI effectively.