To transition to AI, leaders must ruthlessly dismantle parts of their existing, money-making codebase that are not competitively differentiating or slow down AI development. This requires overcoming the team's justifiable pride and emotional attachment to legacy systems they built.

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To maintain agility in the fast-paced AI landscape, Arvind Jain actively encourages his R&D team to throw out old code. He believes rewarding code deletion at the same level as building new features is essential to prevent the company from slowly becoming a legacy software stack.

The most successful AI applications like ChatGPT are built ground-up. Incumbents trying to retrofit AI into existing products (e.g., Alexa Plus) are handicapped by their legacy architecture and success, a classic innovator's dilemma. True disruption requires a native approach.

Don't just sprinkle AI features onto your existing product ('AI at the edge'). Transformative companies rethink workflows and shrink their old codebase, making the LLM a core part of the solution. This is about re-architecting the solution from the ground up, not just enhancing it.

A critical error in AI integration is automating existing, often clunky, processes. Instead, companies should use AI as an opportunity to fundamentally rethink and redesign workflows from the ground up to achieve the desired outcome in a more efficient and customer-centric way.

Competing in the AI era requires a fundamental cultural shift towards experimentation and scientific rigor. According to Intercom's CEO, older companies can't just decide to build an AI feature; they need a complete operational reset to match the speed and learning cycles of AI-native disruptors.

Incumbents face the innovator's dilemma; they can't afford to scrap existing infrastructure for AI. Startups can build "AI-native" from a clean sheet, creating a fundamental advantage that legacy players can't replicate by just bolting on features.

Contrary to the classic engineering rule to "never rewrite," Block's CTO believes AI will make this the new standard. He is pushing his teams to imagine a world where for every release, they delete the entire app (`rm -rf`) and rebuild it from scratch, with AI respecting all incremental improvements from the previous version.

In the age of AI, 10-15 year old SaaS companies face an existential crisis. To stay relevant, they must be willing to make radical changes to culture and product, even if it threatens existing revenue. The alternative is becoming a legacy player as nimbler startups capture the market.

Don't just plug AI into your current processes, as this often creates more complexity and inefficiency. The correct approach is to discard existing workflows and redesign them from the ground up, based on the new paradigms AI introduces, like skipping a product requirements document entirely.

Sierra CEO Bret Taylor argues that transitioning from per-seat software licensing to value-based AI agents is a business model disruption, not just a technological one. Public companies struggle to navigate this shift as it creates a 'trough of despair' in quarterly earnings, threatening their core revenue before the new model matures.