Companies across all industries are increasingly using AI tools to develop their own software applications [1].
This shift matters because the democratization of software development allows non-technical teams to build custom tools. By reducing reliance on traditional software-as-a-service vendors, businesses can create new competitive advantages through bespoke technology [1, 2, 5].
Sridhar Ramaswamy, CEO of Snowflake, said that the industrialization of intelligence is fundamentally changing work [1]. This transition is unfolding throughout 2025 and 2026, as AI lowers the cost and complexity of writing code [2, 3].
While the technology is widely available, the financial landscape remains concentrated. Four companies absorbed $188 billion of AI investment, which represents 65% of total AI funding [2]. This concentration occurs alongside broader venture capital struggles; fund formation hit a decade low in 2025 [2]. Additionally, limited partners have seen nearly $200 billion in negative net cash flows since 2022 [2].
Industry analysts said this trend may lead to a net increase in the number of software-producing entities. A Forbes Business Council contributor said that AI could create more software companies than it destroys [2].
However, the ability to access these tools does not guarantee success. While some argue the technology is broadly applicable, other analyses suggest that not every company possesses the necessary foundation to win with AI [5].
The impact is already visible in professional services. A Business Insider reporter said that AI is rewiring consulting firms from how they deliver client work to how they train, and promote employees [3].
“Industrialization of intelligence is fundamentally changing work.”
The transition of non-tech companies into software producers signals a shift from purchasing generic software to building proprietary intelligence. While this reduces dependency on external vendors, the gap between companies with a strong data foundation and those without one may widen, creating a new divide in operational efficiency.
