Enterprise workflow apps survive foundation models
The speakers argued that deep vertical software applications with complex enterprise workflows will resist displacement by horizontal LLM providers.
The argument
While simple single-feature utility apps are easily replaced by prompts or model features, complex enterprise workflows require integrations, customization, and relationships that foundation models like Anthropic or OpenAI are unlikely to focus on. The historical parallel of Microsoft OS and AWS suggests specialized application layers will continue to thrive.
The thesis, stress-tested
✓ What validates it
- ✓Specialized legal or financial AI apps maintaining high retention and contract values
- ✓Foundation models failing to gain traction in deep vertical application layers
▸ Risks discussed
- ▸Foundation models successfully building out robust application layers
- ▸Rapid decay of software value in an agentic era
Hear it yourself
"So now Jason thinks he doesn't have the shares, but he kinda has the economic right to the share, so his money good. And there's two problems with that. The first is probably the Entropic documents say, Rory, not only can you not sell your shares, you can't transfer beneficial ownership to those shares to Jason. So I may not be able to do this. So Entropic could say, hey, we don't agree to that. And that's fine though. But the funny thing is, Jason and Rory might still have their contract. Because I promised Jason something. Just because Entropic says they don't agree to it, doesn't mean Jason and Rory can't contract. But the tricky thing for poor Jason, two years later when we go public is, he doesn't have any structure."
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE