AI trivializes the creation of internal tools, allowing early-stage companies to build bespoke Enterprise Resource Planning (ERP) systems. This enables unique organizational structures and process management far sooner than traditional buy-at-scale models.
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Incumbent companies are slowed by the need to retrofit AI into existing processes and tribal knowledge. AI-native startups, however, can build their entire operational model around agent-based, prompt-driven workflows from day one, creating a structural advantage that is difficult for larger companies to copy.
Alex Karp argues that the future of enterprise software is not about forcing companies into standardized SaaS workflows. Instead, AI's true power lies in creating custom systems that amplify a company's unique "tribal knowledge" and operational data, turning their specific processes into a competitive advantage that no other enterprise can replicate.
Modern AI coding agents allow non-technical and technical users alike to rapidly translate business problems into functional software. This shift means the primary question is no longer 'What tool can I use?' but 'Can I build a custom solution for this right now?' This dramatically shortens the cycle from idea to execution for everyone.
Instead of relying on one-off prompts, professionals can now rapidly build a collection of interconnected internal AI applications. This "personal software stack" can manage everything from investments and content creation to data analysis, creating a bespoke productivity system.
The barrier to creating software is collapsing. Non-coders can now build sophisticated, personalized applications for specific workflows in under an hour. This points to a future where individuals and teams create their own disposable, custom tools, replacing subscriptions to numerous niche SaaS products.
For decades, buying generalized SaaS was more efficient than building custom software. AI coding agents reverse this. Now, companies can build hyper-specific, more effective tools internally for less cost than a bloated SaaS subscription, because they only need to solve their unique problem.
The shift to AI creates an opening in every established software category (ERP, CRM, etc.). While incumbents are adding AI features, new AI-native startups have an advantage in winning over net-new, 'greenfield' customers who are choosing their first system of record.
The primary value of AI app builders isn't just for MVPs, but for creating disposable, single-purpose internal tools. For example, automatically generating personalized client summary decks from intake forms, replacing the need for a full-time employee.
Nimble small and medium-sized businesses will increasingly use AI to build custom internal tools, especially for CRM. They will opt to create the 20% of features they actually need, rather than pay for complex, expensive enterprise software where they ignore 80% of the functionality.
Using AI platforms like Lovable, business leaders can build custom internal apps simply by describing what they want in plain English. The host created a bespoke org chart tool in 10 minutes, a process that previously required a lengthy and frustrating cycle with developers, showcasing a dramatic acceleration in productivity.
