The text discusses the impact of AI, particularly GPTs, on software development and the transition from Circuit-based architecture to Understanding-based architecture. It highlights the limitations of existing software and the potential of AI-based applications to adapt to business needs. The text also delves into the concept of understanding and how GPTs can apply knowledge in new situations. It presents examples of how software, particularly in the field of security, can benefit from the Understanding-based architecture. The text concludes with recommendations for businesses to prepare for the future of software development.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| AI replacing existing software | Transition from circuit-based to understanding-based architecture | AI-based applications with unlimited input and natural language understanding | Improving efficiency and adaptability |
| GPTs’ ability to understand concepts | GPTs can apply knowledge in new situations and contexts | GPTs can generate content based on different prompts and contexts | Accidental learning and predictive capabilities |
| Software that understands | Transition from legacy software to understanding-based software | Software can generate artifacts and documents based on context and questions | Improving productivity and automation |
| Transformation of software verticals | Disruption of security software and product spaces | Software can perform complex tasks, provide recommendations, and automate processes | Enhanced capabilities and efficiency |
| Preparation for the change | Adoption of new principles, moat assessment, transition planning | Companies need to define their uniqueness, prepare for competition, and manage transition | Ensuring competitiveness and strategic planning |