As AI makes it easy to generate 'good enough' software, a functional product is no longer a moat. The new advantage is creating an experience so delightful that users prefer it over a custom-built alternative. This makes design the primary driver of value, setting premium software apart from the infinitely generated.

Hera's target is not just existing After Effects users, but the larger market of people who need motion graphics but find professional tools too complex or expensive. By lowering the barrier to entry, AI tools create entirely new markets of creators, much like Airbnb did for home rentals.

Advanced AI models are blurring the lines between coding, design, and marketing, enabling a new "vibe building" workflow. This paradigm shift allows a single person to manage the entire product stack holistically, moving beyond simple "vibe coding" to full-fledged product creation.

While large enterprises remain cautious about ceding creative control to AI, small and mid-sized businesses see a breakthrough. AI overcomes the economic barriers to content production, enabling them to execute personalization and campaigns at a scale that was previously out of reach.

While chatbots are an effective entry point, they are limiting for complex creative tasks. The next wave of AI products will feature specialized user interfaces that combine fine-grained, gesture-based controls for professionals with hands-off automation for simpler tasks.

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.

As AI models become proficient at generating high-quality UI from prompts, the value of manual design execution will diminish. A professional designer's key differentiator will become their ability to build the underlying, unique component libraries and design systems that AI will use to create those UIs.

Many users of generative AI tools like Suno and Midjourney are creating content for their own enjoyment, not for professional use. This reveals a 'creation as entertainment' consumer behavior, distinct from the traditional focus on productivity or job displacement.

AI tools are collapsing the traditional moats around design, engineering, and product. As PMs and engineers gain design capabilities, designers must reciprocate by learning to code and, more importantly, taking on strategic business responsibilities to maintain their value and influence.