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How The New AI Paradigm Will Disrupt The Business Application Market

Jan 10, 2025 - forbes.com
The article discusses the transformative impact of AI on business software, particularly focusing on user interfaces (UIs). Traditional graphical user interfaces (GUIs) are being replaced by adaptive AI user interfaces (AIUIs), which could render the "adoption effect" obsolete and change how business software operates. As AI assistants become more integrated into business tasks, they will act as intermediaries between users and applications, diminishing the individuality of traditional business apps and making them mere data processing engines. This shift will blur the lines between different types of business applications, as AI assistants will manage tasks across systems seamlessly.

For software vendors, this evolution means a significant market shift. The focus will move from end-user engagement to partnering with AI assistant providers, emphasizing flexibility, scalability, and well-structured APIs. Vendors that have prioritized usability over architectural excellence may struggle to adapt and could be acquired for their customer bases. The article advises vendors to prepare for this AIUI revolution and suggests that employees should develop new competencies beyond specific software knowledge. While the full transition may take a few years, the groundwork for this change is already in place.

Key takeaways:

  • The development of AI is leading to the replacement of traditional graphical user interfaces (GUIs) with adaptive AI user interfaces (AIUIs), making the "adoption effect" obsolete.
  • A new class of vendors will emerge, focusing on developing AI assistants for business tasks, which will control the user experience and interact with business applications through well-structured APIs.
  • Traditional business applications will lose their individuality and become data processing engines behind AI assistants, leading to a shift in customer loyalty and the blurring of boundaries between different types of business applications.
  • Software vendors will need to adapt to the AIUI paradigm by focusing on flexibility, scalability, and well-structured APIs, while those who have prioritized usability and marketing may struggle to find their place in the new market.
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