Welcome to the future of software, a new era in which generative AI and humans work together to customize and create entire applications. This is the final phase of software eating the world, and it threatens to disrupt the established software industry and challenge the value of SaaS companies. No-code and low-code startups like Airtable and Webflow have been leading the charge for years, but generative AI tools are taking it to the next level. The technology is allowing everyday people to generate code using natural language, and already, enthusiasts are using it to build simple apps like trivia games and sites for discounted Amazon items.
Major software companies are getting in on the action as well, with knowledge base startup Guru introducing an AI writing assistant that helps customers customize their tones of voice. CRV’s Brittany Walker even foresaw a world where autonomous AI agents interact with software instead of humans. To stay relevant, established software companies will have to prove their worth. On the plus side, generative AI software could drop the barrier to entry for people who want to create their own tools, but conversely, individual users will still need to weigh the opportunity cost of building versus buying from outside vendors.
ChatGPT is one example of generative AI technology, which offers early signs of personalization with its intuitive responses. The company was founded by AI experts Ethan Kurzweil, Talia Goldberg, and Rick Nucci, all of whom saw the potential of what the technology could offer. Matt Turck of FirstMark, Jake Saper of Emergence Capital, James Shecter of Fika Ventures, and VCs Elad Gil and Vanessa Larco showed their faith by backing ChatGPT and its mission. Regardless of what the future holds, their confidence in the power of generative AI will soon be put to the test.
