When software becomes fast food
9 days ago
- #Software Industry
- #Power-Law Distribution
- #Generative AI
- Generative AI, like ChatGPT, has seen rapid adoption, with ChatGPT reaching one million users in just five days.
- Multiple companies, including OpenAI, Anthropic, Google, Alibaba Cloud, and Meta, are advancing AI models, each specializing in different areas.
- The software industry has shifted from a golden age of high salaries and quick promotions to a focus on profitability, leading to layoffs.
- AI is disrupting white-collar jobs first, making software production more statistical and code generation cheaper.
- The value of average developers decreases, while true experts in architecture, design, and judgment become more valuable.
- Coding is transitioning into a commodity phase, where competitive advantage lies in architecture, integration, and product vision.
- The restaurant industry serves as an analogy for software's future, with value concentrated in a few elite players (power-law distribution).
- Developers can adapt by becoming AI operators, true experts, or deciders in product and strategy.
- Managers must shift focus from task coordination to managing complexity, strategy, and expertise curation.
- AI is industrializing software, making production easy but judgment the new bottleneck, leading to a power-law distribution of value in the industry.