AI will produce the most valuable software companies in history while destroying most that exist today. The industry gets larger. The winners get fewer. Software creation is becoming cheap. Distribution and trust are becoming more valuable. That's it.
Technical due diligence was built for deterministic software. AI shattered that premise. Agents don't suggest—they act. The new audit must reach into probabilistic reasoning, inference economics, and semantic security. The report on the shelf is dead.
The SaaS era monetized state. The agentic era will monetize judgment. Systems of Record captured what happened, and Context Graphs capture why it was allowed to happen. Incumbents are optimized for the wrong layer. And judgment compounds faster than data.
The AI advantage won't come from smarter tools, but from organizations that treat intelligence as infrastructure. Scattered deployments compound into complexity and fatigue, not competitive advantage. The firms that thrive will build systems where intelligence accumulates.
Diffused AI strategies yield marginal, replicable gains. Deep concentration in one domain—chosen via three filters: infrastructure needs, workflow centrality, and measurability speed—creates competitive moats. Commitment to execution matters more than perfect selection.