Why your business must be a software first company
Shane Kempton
President & Chief Technology Officer at Phase 2, Chief Technology Officer at Drakewell
The New Economic Engine
Software has revolutionized the global economy, becoming the most efficiently produced and distributed product in history. It launched an unprecedented economic engine, forcing every company to become a software enabled company—whether they like it or not.
Now, AI is about to pour rocket fuel on the fire.
Forget "What can AI do for my organization?"
If you're asking this question, you're missing the point entirely. We're not talking about a new suite of tools or an interesting tech trend. We're staring down the barrel of a fundamental shift in how labor—all labor—operates.
The internet made it unthinkable for a business to operate offline. In the same way, AI (and eventually AGI) will make it impossible for any organization to thrive without integrating AI deeply into their operations. Why? Because AI will offer something unprecedented: nearly unlimited labor.
The internet revolutionized communication; AI will do the same with labor itself.
AI Adoption: Not a Choice, But a Necessity
In the coming years, organizations that don't robustly integrate AI and Embodied AI machines to empower and scale their workforce won't just lag—they'll become obsolete. The internet revolutionized communication; AI will do the same with labor itself.
Early adopters won't just enjoy increased efficiency—they'll redefine what efficiency means. They won't just boost productivity—they'll reinvent the very concept of productivity. Meanwhile, the laggards will find themselves playing an unwinnable game of catch-up.
The New Labor Landscape
Forget the old divisions of white-collar and blue-collar. In the AI-driven future, we're looking at two primary categories:
1. High-skill, highly-creative, highly-social jobs with AI assistance: Think top-tier craftsmanship, cutting-edge engineering, groundbreaking research, critical systems management, bespoke services, and policy-making.
2. AI-automated jobs with some human assistance: Think pretty much everything else.
Everything is Software—No, Really, EVERYTHING
Software already dominates business operations. AI will supercharge this dominance, making machine intelligence both more powerful and more accessible.
Here's the kicker: AI allows us to abstract work that we never thought a machine could handle. This level of abstraction isn't new—it's been the secret sauce of well-run software engineering teams for years. Only now, it's applicable across almost every business domain, not just software.
Organizations and individuals who master this abstraction will achieve productivity levels that seem like science fiction today. As AI capabilities grow, compute power will effectively become labor power, available at nominal cost across any business domain.
Your New Business Model: Think Like a Software Company
When everything becomes software, you'd better start acting like a software company. Here's your new playbook:
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1. Work from first principles and think long-term.
2. Ruthlessly automate any task you do often.
3. Test everything, then automate those tests.
4. Build once, abstract endlessly.
5. Obsess over finding and retaining?talent.
6. Pour all remaining energy into creative efforts like engineering and design.
As AI capabilities grow, compute power will effectively become labor power
This isn't just theory. Look at Tesla's manufacturing prowess or SpaceX's approach to rocket launches—they're running automotive manufacturing and aerospace like software companies, and it's working.
The Barriers Are Falling
Yes, this level of automation and iteration used to be out of reach for many organizations or wasn't possible for many areas of labor. When is was possible, it required deep pockets, top-tier talent, and unwavering executive commitment.
But as AI capabilities skyrocket, these barriers are crumbling. When we hit usable AGI, they'll be all but gone. At that point, your only limitation will be your team's discipline and imagination.
This Isn't an IT Function—It's Your Entire Business
Treating AI as just another IT tool is like treating electricity as just a way to light your office. AI, like software before it, is a force multiplier that can enhance efficiency at almost every level of your organization.
Treating AI as just another IT tool is like treating electricity as just a way to light your office.
AI makes it easier to modify and adapt software behaviors across countless workflows. It's not just creating new capabilities—it's supercharging or replacing the labor in every existing function in your business.
The Bottom Line
The AI revolution isn't coming—it's here. The capabilities of foundation models will increase each year, meaning more parts of an organization can be automated. Organizations that embrace AI and adopt software-first principles won't just survive; they'll define the future of business.
This isn't about gaining a competitive edge—it's about remaining relevant in a world where AI-driven automation is the norm, not the exception. The cost barriers are falling. The knowledge is out there. The only question is: Are you ready to reimagine your entire business as a software operation?
Because ready or not, that's exactly what it's becoming.
Chief Marketing Officer | Product MVP Expert | Cyber Security Enthusiast | @ GITEX DUBAI in October
4 个月Shane, thanks for sharing!
That's a fascinating perspective on the evolving role of AI in business. How do you think companies can best adapt to this shift towards software-first operations?
Great article! I recently had a similar discussion with a fellow developer among these lines. We also discussed ANI/AGI/ASI and the ability (current and future) to push AI out to smaller end-user devices in a less connected environment such as remote locations.