@tjrobertson52

If you haven't heard about what they're calling the saspocalypse, let me catch you up and then explain what people are getting wrong and how you can take advantage of it.

In early February alone, the software industry saw a loss in market capitalization of 1 to 2 trillion dollars. Now this market cap has actually been dropping since 2023 and even more steeply since 2025. But in the last few weeks, it's really just falling off a cliff.

As an example, Duolingo stock price is down 83% right now.

The reason? It's AI. Of course it's AI, but not quite for the reason people think.

Most people seem to think that AI is gonna make it easier and easier to create software like this and therefore these software companies are gonna have way more competition. But that completely misses the point and won't explain a 1 to 2 trillion dollar loss in a couple weeks.

The point is not that AI is letting us make better software cheaper, even though it is. So AI is enabling something way more useful than modern software. Up until recently, essentially all software is just a database with an interface sitting on top of it and some basic logic connecting it to.

The only difference recently is now every software developer is having to inject AI into their product to keep it relevant. But we're learning very quickly that this is exactly the opposite of how we want to integrate AI.

6 model but more specifically it was its integration of what are called plugins. Plugins give us a glimpse into what I think is gonna be the future of software, the thing that will ultimately replace all the modern software companies.

Instead of forcing AI inside existing software that's meant for humans plug in, simply hand over the data and any essential logic to the AI itself and then ultimately it's the AI using the software or rather just spinning up software on the fly and then using it. And if a human ever needs to interact with a software layer, the AI can just spin up a custom UI on the fly.

And I realised to most people at first this just sounds like it's over complicating something that was already very simple. For example, it would just be easier for me to go into Quickbooks myself than having to talk to my AI about what I wanted to do in Quickbooks and then just hoping that it did it right.

But I'm guessing this is similar to how people felt when we went from keeping books by hand to doing it with a computer and from when we transitioned from using spreadsheets to using software like Quickbooks. Change is always hard but eventually people are forced to realise the new paradigm is just better.

If you've used Cloud, Cowork or any of the plugins in Cloud, I think what you quickly realise is it's not like you're telling the AI to use the software for you. It's more like you just hired a financial analyst, you tell it your goals and it figures out how to use the software.

As this gets better, eventually we're gonna forget the software layers even there. Instead of opening the Duolingo app, you'll just have access to the best language teacher in the world and it'll know exactly what you need to work on.

So how can you take advantage of this? A lot of people are building their own software right now, their vibe coding and I think that's really cool and if you can build something really quickly and get a lot of use out of it in the next year, I think it's totally worthwhile. Others are building automations in N8N and those can be really useful too.

However, I wouldn't recommend sinking too much time into either of these things right now.

What we're doing at our agency, what I think most people should be doing right now is building what are called skills inside of cloud. I'll do another video on skills and how to set them up but they're essentially the building blocks of plugins. Anyone with any kind of domain specific expertise can easily create a skill that adds a new feature to Claude and it looks like the other model makers are also adopting the skill architecture.

Once you create a skill, you can share it with the rest of your team, you could sell it online, you can even host it on Git Hub and then maintain it over time. Or maybe you don't want to build skills yourself. In that case, you can just wait until a plugin comes out that does everything your current software does, only better.