Will AI make software developers obsolete?

That would be like giving everyone a washing machine and saying, ‘You don’t need to do laundry anymore!’

Sure, that’s helpful, but you still need someone to load the machine if you don’t want your underpants to smell.

Will AI Eliminate Software Development?

• Why Read:

  • This article provides analysis on how AI will impact software development, and the significance for startup founders.

• Featuring:

  • Michael Houck, Founder at Megaphone and Houk’s Newsletter

• Link: 

  • “Are We Going Post-Software?”

Key Concepts and Tactics:

• Recognizing the Potential Impact of AI on Software Development:

  • Point: Understand that AI may commoditize software development, allowing anyone to create custom software on demand.

    • "Believers say that AI will be able to create software on demand and that anyone will (theoretically) be able to instruct an AI to build custom software."

• Considering the Quality of AI-Generated Software:

  • Point: Acknowledge the skepticism regarding the quality of software created by hobbyists using AI compared to professional engineers.

    • "Skeptics, notably like Garry Tan and Aaron Levie, make good points about whether software that's created by hobbyists rather than engineers will meet the quality bar that's required for widespread, frequent use."

• Evaluating the Future of Software Startups and Learning to Code:

  • Point: Question whether starting a software company or learning to code is still a good idea in light of AI's potential impact on the industry.

    • "This is an existential question for founders — if AI eventually makes it possible for anyone to create software, is it still a good idea to start a software company or learn to code in 2024?"

• Drawing Parallels Between AI's Impact on Software and the Internet's Impact on Journalism:

  • Point: Recognize the similarities between how AI may disrupt software development and how the internet and social media transformed journalism.

    • "Right now, producing software is hard and quality engineers are expensive. Now, AI has come along. If it succeeds in letting anyone be a engineer, the number of people creating software will spike, and some of what's created will actually be pretty good. Software would then be cheaply accessible, and platforms that can control distribution will own the most important node in the value chain."

• Anticipating the Improvement of AI Models and Their Impact on Software Quality:

  • Point: Expect future AI models to produce higher quality outputs and perform more complex tasks, leading to better AI-generated software and the erosion of quality barriers.

    • "It's logical to believe then that future models will produce higher quality outputs and be able to do more complicated tasks. That means the software AI can build for you will be higher quality as well, and some of those quality barriers will begin to fall."

• Emphasizing the Importance of Learning to Code Despite AI's Advancements:

  • Point: Encourage learning the principles of coding to better understand and instruct AI when building software, enabling engineers to create more software in less time.

    • "I see a future where you learn the principles of coding specifically to understand how your AI thinks when you instruct it to build software. Engineers will be able to more expertly instruct the AI and craft more complicated software… and they'll be able to create significantly more pieces of software in less time (meaning more opportunities to find product-market fit)."

Evolving from Founder to Founder-CEO

Why Read: 

• This article provides actionable tactics and offers advice on the mindset that enables founders to scale from $1M to $10M ARR.

Featuring:

• Ashu Garg, General Partner at Foundation Capital

Link: 

• “Graduating from Series A: How to get to $10M ARR”

Key Concepts and Tactics:

• Achieving Product-Market Fit: The First Phase from $0 to $1M ARR

  • "Put simply, the goal is to identify a burning problem that a specific subset of customers is desperate to solve, then create a product that alleviates that pain point more effectively than any existing solution."

  • "Reaching $1M ARR is an impressive achievement. It confirms there's real demand for what you've built and that your product can successfully meet that demand."

• Evolving from Founder to Founder-CEO: The Transition from $1M to $10M ARR

  • "As a technical founder, one of the biggest challenges you'll face as you scale from $1M to $10M ARR is learning to balance two very different, often conflicting, mindsets."

  • "Rather than pull all-nighters coding, founders at this stage need to evolve from ICs (individual contributors) into force multipliers for their entire organization."

  • "To successfully shift into this new role—not just founder, but founder-CEO—I advise technical founders to focus on three key areas:

    • 1) Establish a hiring playbook

    • 2) Delegate to your team, but stay hands-on

    • 3) Define and reinforce a culture that's built to scale."

• Building a Go-To-Market Engine to Scale from $1M to $10M ARR

  • "Building this 'machine' involves creating repeatable processes for all aspects of going to market: lead generation, sales, onboarding, customer success, etc."

  • "A scalable GTM machine consists of four main building blocks:

    • 1) Fuel your demand generation engine

    • 2) Turn sales into science

    • 3) Graduate from MSP to 'whole product'

    • 4) Obsess over customer outcomes."

  • "If you want to hit $10M ARR, landing new customers is only half the battle. Just as important, maybe even more so, is your ability to retain and grow the customers you already have."

• The Importance of Starting and Learning by Doing

  • "If this process feels daunting, one of the best things you can do is…just start doing."

  • "So if you're feeling stuck, my advice is to just pick a place and start. Maybe it's running a few demand gen experiments, sketching out your sales process on a whiteboard, or sitting down with your product team to map out your customer journey. Whatever it is, just dive in. Get your hands dirty. Start learning by doing."

Subscribe to Tactician

Tactics and strategies for building tech startups from industry-leading Founders, Operators and Investors.

No spam. Unsubscribe anytime.