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.

Simply offering the latest model is no longer a competitive advantage. True value is created in the system built around the model—the system prompts, tools, and overall scaffolding. This 'harness' is what optimizes a model's performance for specific tasks and delivers a superior user experience.

As AI makes software creation faster and cheaper, the market will flood with products. In this environment of abundance, a strong brand, point of view, taste, and high-quality design become the most critical factors for a product to stand out and win customers.

The obsession with lean methodology has created a market of low-quality, uninspiring software. In this environment, building a polished, considered, and beautiful end-to-end product is no longer a luxury but a true competitive advantage that stands out and inspires users.

Perplexity's VP of Design, Henry Modiset, states that when hiring, he values product intuition above all else. AI can generate options, but the essential, irreplaceable skill for designers is the ability to choose what to build, how it fits the market, and why users will care.

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.

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.

Technical implementation is becoming easier with AI. The critical, and now more valuable, skill is the ability to deeply understand customer needs, communicate effectively, and guide a product to market fit. The focus is shifting from "how to build it" to "what to build and why."

As AI makes it incredibly easy to build products, the market will be flooded with options. The critical, differentiating skill will no longer be technical execution but human judgment: deciding *what* should exist, which features matter, and the right distribution strategy. Synthesizing these elements is where future value lies.