Previously, building bespoke software for niche internal problems was too expensive. AI agents dramatically lower this cost, allowing companies to create custom-fit solutions for 99% of their problems, ending the era of contorting workflows to fit generic, off-the-shelf tools.

Countering the narrative that AI will kill software, NVIDIA CEO Jensen Huang argues agents will be tool users, not tool builders. Just as a robot would pick up a screwdriver instead of reinventing one, AI agents will leverage existing platforms. This positions AI as an accelerator for current software, not an immediate replacement.

Increased developer productivity from AI won't lead to fewer jobs. Instead, it mirrors the Jevons paradox seen with electricity: as building software becomes cheaper and faster, the demand for it will dramatically increase. This boosts investment in new projects and ultimately grows the entire software engineering industry.

Contrary to fears of AI making SaaS obsolete, the reality is that most enterprise software is deeply flawed. A contrarian view is that AI will provide the tools to finally rebuild these systems better, creating a massive new wave of demand for software development and product design.

Automating coding tasks won't eliminate engineers. Similar to the shift from assembly to higher-level languages, AI tools increase output potential, leading to an explosion in demand for software and the builders who can leverage these powerful new platforms.

AI tools make software development drastically cheaper. Rather than replacing engineers, this efficiency will likely trigger the Jevons paradox: the unlocked demand for new, more powerful software will skyrocket, increasing the overall need for people who can direct these new capabilities.

Jevons Paradox states that as a resource becomes more efficient, consumption increases. Applied to AI, making software development faster won't eliminate developer jobs. Instead, it will create a surge in demand by enabling new applications like internal tools and personal apps.

Counterintuitively, AI tools that make software engineering more efficient are increasing the demand for engineers. By lowering the cost of development (Jevons Paradox), AI is unlocking latent demand from non-tech industries that previously couldn't afford a large engineering workforce.

Contrary to the "SaaS-pocalypse" fear, Nvidia's CEO believes AI agents will boost the software industry. He argues agents will use existing tools like databases and calculators rather than replace them. This suggests a future of AI-driven augmentation, where agents become users of and distribution channels for specialized SaaS products.