AI Agents 2025: How the Future of Software Ownership is Being Redefined

I wrote this post from my podcast with Founder AI Stories Podcast by Satya & Rashmi.

https://www.youtube.com/watch?v=pHBVOohj1Uc&list=PLh1k_46oND7LboALnTMC-7ZlrJXmETGOp&index=1

The Evolution of Startup Ecosystems and AI's Transformative Role

Looking back at my entrepreneurial journey that began in 2007, I've witnessed several technological waves reshape how businesses operate. From the early days of web technologies to the mobile revolution, web3, and now AI, each wave has presented unique opportunities and challenges for founders.

The startup landscape in 2007 was vastly different. There was excitement but also a lack of clarity about how to build and run a startup. The market dynamics were uncertain, and in hindsight, timing is critical when entering a new market. Today, we face similar uncertainties and opportunities with AI.

A New Form Factor: AI as an Interface

What makes the current AI revolution particularly interesting is that it's not just another technology—it's a new form factor for human-computer interaction. Similar to how laptops and mobile phones became interfaces that transformed how we interact with technology, AI is emerging as the next interface revolution.

"AI is coming as a super form factor for everything whether you are building out a tool, launching a program, teaching people, or doing anything—AI is going to be part and parcel of our life."

We're moving toward a world where most interactions will happen through agentic interfaces—you won't need to learn complex systems; you'll simply interact with an AI agent that handles the complexity for you. This will dramatically lower barriers to technology adoption, especially in sectors that have traditionally resisted digitization.

The Democratization of Software Ownership

One of the most significant shifts I see coming is in how businesses, particularly in markets like India, will relate to software:

"A lot of Indians always want to own something—the ownership thing. We have an ownership mindset. Even if you say rent it, I want to buy it."

This cultural preference for ownership over subscription has limited SaaS adoption in many markets.

With AI agents, we're moving toward a model where businesses can "own" their AI solutions rather than just subscribing to them. When costs drop from $1,500 a year to $250 a year, businesses can deploy AI solutions that they can truly customize for their specific needs.

"We are going to be in that world where we will have hundreds and thousands of agentic software created for users in their own way. There will be somebody who will create it or find a way to create it, but I will be able to go to the market, deploy it, own it, optimize it, improve it, customize it for my business segment, and I'm going to live with it."

The Development Speed Revolution

The development timeline for digital products is collapsing dramatically. What used to take months can now be accomplished in days:

"What used to take four, five, six months to develop a product is now taking 14 days."

This acceleration means:

1. Founders can experiment faster
2. Market validation can happen more quickly
3. The cost advantage of outsourcing development is diminishing

The Synthetic Data Opportunity and Challenge

Synthetic data is revolutionizing how we train AI models, but it comes with limitations:

"Synthetic data is like an AI protein shake—great for building muscles, but you risk bloating if you take it in the wrong proportion."

Synthetic data provides a starting point—it helps solve the cold start problem—but it cannot replace real-world data and insights. We'll likely see specialized agencies emerge that provide industry-specific synthetic data complemented by real-world insights:

"Synthetic data is only going to give you some conventions, some configuration to get started... it cannot be your entire production. We're going to see agencies specializing in specific synthetic data for insurance, healthcare, etc., but their true value will be in bringing real-world insights and filling the missing pieces."

A New Business Model: Agent Ownership

Perhaps the most exciting opportunity is the emergence of a new business model around AI agent ownership:

"Rather than selling a subscription business which brings a mindset of renting, you can say you are buying an agent, and the value of this agent is going to grow 3x, 5x over the next one or two years."

This ownership model resonates particularly well in markets where asset ownership is culturally valued over renting. It creates a new paradigm where:

1. Businesses "own" their agents
2. These agents can be optimized for specific domains
3. The agents become assets that can be transferred or sold
4. The value of the agent grows as it learns more about the business

"If you look at agentic insurance—if I am of high caliber, I got an agent developed, I run my business, I have everything inside it—tomorrow somebody wants to acquire me, they can acquire the agent. You're not acquiring me; you are acquiring the agent. I'm giving you the business."

Advice for Founders in the AI Era

For founders starting today, my advice is clear: don't build in the old way.

"Don't start the old way of research, the old way of documenting, the old way of collaborating, the old way of designing UX, the old way of pricing... Think in terms of what the user experience could be with agentic interfaces."

The cost advantage of building in lower-cost regions is disappearing:

"You can't just play just because you build in India and say 'Oh, my cost of operating is going to be low.' What are you talking about? I can use an AI and get that software developed for $400. I'm not going to pay a million dollars to do it."

We're entering a new era where the fundamentals of building and scaling businesses are being rewritten. The winners will be those who embrace agentic interfaces, think differently about ownership versus subscription, and leverage AI not just as a technology but as a new paradigm for creating and delivering value.

Did you find this post interesting? I would love to hear your thoughts and perspectives.

About Santosh:

Santosh is the CoFounder of Foundership — AI, Web3 & Emerging Tech Accelerator VC.

Santosh is an Internet Technologist.

With over a decade of experience building, fundraising and growing his Internet startup Explara and many Internet products for Startups in the US, UK, Indian and Singapore markets, Santosh is on a journey to back amazing founders building the next Internet (Web3, AI + Emerging Tech).

Follow @SantoshPanda