Today's dominant AI tools like ChatGPT are perceived as productivity aids, akin to "homework helpers." The next multi-billion dollar opportunity is in creating the go-to AI for fun, creativity, and entertainment—the app people use when they're not working. This untapped market focuses on user expression and play.

Synthesia initially targeted Hollywood with AI dubbing—a "vitamin" for experts. They found a much larger, "house-on-fire" problem by building a platform for the billions of people who couldn't create video at all, democratizing the medium instead of just improving it for existing professionals.

AI's ability to generate ideas and initial drafts for a few dollars removes the high cost of entry for new projects. This "ideation" phase, once proven successful, often justifies hiring human experts for full execution, creating net-new work that was previously unaffordable.

The new wave of entrepreneurship isn't about scaling large companies. It's about solopreneurs acting as "gig entrepreneurs" who master and customize a suite of AI tools to deliver bespoke, high-value outcomes for clients, effectively replacing the work of entire small agencies.

Like AI coding assistants for engineers, tools like Hera will not eliminate motion designers. Instead, they automate tedious 'pixel-by-pixel' execution. This frees designers to focus on high-level creativity, strategy, and overall vision, shifting their role from pure execution to creative direction.

The surprising success of Dia's custom "Skills" feature revealed a huge user demand for personalized tools. This suggests a key value of AI is enabling non-technical users to build "handmade software" for their specific, just-in-time needs, moving beyond one-size-fits-all applications.

Traditional software required deep vertical focus because building unique UIs for each use case was complex. AI agents solve this. Since the interface is primarily a prompt box, a company can serve a broad horizontal market from the beginning without the massive overhead of building distinct, vertical-specific product experiences.

A powerful startup strategy is to screenshot a successful app and use AI to rapidly generate a clone tailored to a new market. This "business arbitrage" allows founders to quickly test proven models in new geographies or vertical niches with minimal upfront development.

Don't underestimate the size of AI opportunities. Verticals like "AI for code" or "AI for legal" are not niche markets that will be dominated by a few players. They are entire new industries that will support dozens of large, successful companies, much like the broader software industry.