Think back to that exasperating morning when you needed to check your flight status, arrange a ride to the airport, and send an important work email, all while desperately trying to gulp down your coffee. Three separate apps, three distinct interfaces, and three separate headaches. We've come to view this digital disarray as just the norm. "That's simply the way software functions," we convince ourselves as we switch between countless apps daily. But what if everything you believe about how computers operate is about to be completely transformed?
The tech industry is undergoing a seismic shift that makes previous digital revolutions seem like minor tremors. AI isn't just changing software; it's consuming it entirely and replacing it with something fundamentally different. As someone who has been tracking AI's evolution from curiosity to necessity, I've witnessed firsthand how rapidly these changes are escalating. In this post, I'll illustrate exactly how this transformation is unfolding and why it matters to everyone who interacts with technology (which, let's be honest, is all of us).
The Great App Unraveling: Why Digital Folders Are Disappearing
For decades, our digital lives have been neatly organized into individual applications—digital containers that hold specific functions captive. Weather resides in one app, banking in another, and work tasks in yet another.
We've been led to believe this is efficient, but it’s not. This system requires our brains to maintain a mental map of where each function resides, constantly switching contexts as we transition between applications. It's akin to storing your socks, keys, and coffee mugs in different rooms of your house—technically organized, yet wildly inefficient in practice.
The Fragmentation Problem
Think about your morning routine:
- Check weather (open weather app)
- Read news (open news app)
- Check schedule (open calendar app)
- Respond to messages (open messaging app)
- Order coffee (open coffee shop app)
Five distinct interfaces lead to five unique mental models, creating five friction chances.
Now picture this instead: "Good morning, I want to know about my day." One interface, one simple request, and one cohesive experience that consolidates everything you require.
This isn't just a science-fiction concept; it's the reality that AI is actively developing by dismantling the artificial barriers among software functions.
How AI Rewires Everything: The New Computing Model
The traditional computing model is based on scarcity and control. Software companies create walled gardens, platforms charge fees for access, and users must adapt to various disconnected experiences. AI fundamentally disrupts this model by transforming software from products into services—shifting from rigid containers to flexible capabilities that can be accessed precisely when needed, without all the packaging.
What This Looks Like In Practice
Instead of: "I need to book a trip, so I'll open my airline app, then my hotel app, then my car rental app, then my travel insurance app..."
You simply tell your AI assistant: "I need to be in Chicago next Tuesday through Friday. Please book me the usual arrangements."
Behind the scenes, AI pulls together all these functions—not as apps, but as services that work in concert. The interface isn't a grid of colorful icons; it's a conversation. It demonstrates intelligence that anticipates and executes. This shift is significant because it transfers power from software makers to AI orchestrators. And whoever controls that orchestration layer will control the future of computing.
The Economic Earthquake: Who Gets Buried, Who Survives
For companies that have built empires on the app model, this shift isn't just uncomfortable - it's existential.
The App Store Apocalypse
App marketplaces currently function like toll booths on the digital highway, collecting up to 30% of all transactions. This model generated over $100 billion in 2023 alone. But what happens when the highway itself disappears? When users no longer need to download separate applications because AI manages everything behind the scenes? Those toll booths become relics overnight. The 30% cut evaporates. Billions in revenue vanish. Tech giants aren't standing still—they're racing to position themselves as key players in this new AI-orchestrated world. However, many won't make the transition. History is filled with dominant companies that couldn't adapt to fundamental shifts (remember Blockbuster watching Netflix rise?).
The New Power Centers
As traditional software power structures crumble, three new centers of gravity are forming:
- Foundation Model Creators - Companies developing the fundamental AI intelligence that underpins all other applications.
- AI Interface Designers - Individuals crafting the most user-friendly methods for humans to engage with AI.
- Vertical AI Specialists - Teams creating highly specialized AI tailored for specific industries and use cases.
This last category is particularly intriguing. While general AI assistants capture the headlines, the true revolution is occurring in specialized AI designed for specific tasks and industries. Think of AI that comprehends legal contracts better than most lawyers, or medical AI that can analyze symptoms with the expertise of multiple specialists, or creative AI that generates brand-aligned content across all channels. These vertical AI solutions address concrete problems, delivering immediate value rather than just fascinating possibilities.
Beyond The Blank Box: Why General AI Isn't Enough
Let's be honest: most people don't want to figure out how to use AI. The blank chat box feels intimidating rather than inviting; it seems more like homework. This is why the current phase of generalized AI interfaces won't last. It's a technological stepping stone, not the final destination.
The successful approach will involve AI that requires no prompting skills—intelligence that integrates so seamlessly into your workflow that you forget it's even there. The future won’t consist of one super-AI that does everything; it will be made up of multiple specialized AIs that understand exactly what you need in specific contexts:
- A legal AI that drafts flawless contracts
- A research AI that discovers and synthesizes information
- A creative AI that produces and enhances content
- A scheduling AI that organizes your time and commitments
These different intelligences will work together behind the scenes, creating a cohesive experience without you having to manage them individually.
How To Survive (And Thrive) In The AI-First World
Whether you're a developer, business leader, or everyday technology user, this transformation will impact you. Here's how to position yourself for success:
For Developers
The app development model is shifting to an AI-first approach. Instead of building self-contained applications, focus on creating:
- Microservices - Small, specialized functions that AI can call and orchestrate
- AI skills - Capabilities that plug into larger AI ecosystems
- Vertical intelligence - Deep domain expertise packaged as AI solutions
The most successful developers won't build standalone apps but will create essential components of AI-orchestrated experiences.
For Businesses
The companies that thrive will embrace these new paradigms:
- AI-native interfaces - Reimagining customer experiences without app constraints
- Service orchestration - Building businesses around coordinating capabilities, not selling products
- Data advantages - Leveraging unique data to create AI that can't be easily replicated
Those who cling to the old app-centric business models will find themselves increasingly irrelevant as AI reshapes consumer expectations.
For Everyone
As users, we must adjust to interfaces that are increasingly conversational and predictive. The focus will transition from recognizing which app performs specific tasks to mastering how to collaborate effectively with intelligent systems. Although this shift may be challenging at times, it will ultimately lead to technology that adapts to our needs, rather than requiring us to conform to it.
This Isn't Evolution - It's Revolution
Don’t be mistaken: the transition to AI-first computing is not merely a passing tech trend. It represents a crucial transformation in the functionality of software, the operation of businesses, and our engagement with technology. Companies that grasp this shift—viewing AI as a fundamental computing paradigm rather than just an added feature—will shape the upcoming age of technology. In contrast, those who fail to adapt will become part of the extensive list of businesses that cannot keep pace with change. The issue isn't whether this transformation is happening—it's already in progress. The real question is: who will be the first to excel in this new reality? Time is of the essence, as the stakes have never been higher. We're not simply modifying software; we're reconstructing the entire digital economy from the ground up.
Based on: "The great software rewiring: AI isn't just eating everything; it is everything" by Justin Westcott