Welcome Software 3.0
Consider the following as my take on a future that may happen—but in my view, is already unfolding: A software revolution is happening beneath our feet. I say beneath our feet because while we all consider ourselves tech-savvy, constantly chatting with AI models, I don’t think we talk enough about the fact that this is just the beginning. The gap between the real transformation and what we have now is like the distance between MS-DOS and Facebook at its peak.
This article focuses on B2B software, where adoption is relatively straightforward. However, I plan to write a follow-up article about B2C software and its implications for what’s often called Web3.0— which I see as a natural complement to Software 3.0.
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The Challenge of Growing Small Businesses
A small business at the start of its journey usually faces an overload of information and a lack of structured workflows. Actually, that’s not entirely true. Small businesses often struggle with a lack of knowledge, too much scattered data, and an unclear understanding of what “processes” even mean. They operate on inertia—customers come, customers go, and many decisions are made based on luck, gut feelings, or ego.
The kind of business I described earlier—one that manages its customers in an Excel spreadsheet—is actually rare. It’s not something I see happening often, and even when a business does use Excel, the file is usually neglected and outdated. This is simply a byproduct of how small businesses naturally operate: a few people, limited cash flow, and too much work to handle. That’s always been the case. Even when software started helping large businesses, it was expensive, sold as a one-time licensing deal, required long implementation and integration processes, and had to be customized for different operating systems—essentially, a logistical nightmare for a small business.
The Cloud Era (Software 2.0)
For years, small businesses had to make do with fragmented tools, too much manual work, and inefficient processes. Software existed, but it wasn’t a real solution for them. It was designed for large enterprises, priced accordingly, and required dedicated IT teams to implement and maintain. Software was something you purchased in a long, tedious process with sales reps—not something you subscribed to with a credit card and started using immediately.
That changed when cloud-based subscription software entered the picture. Suddenly, a small business that never considered using a CRM could sign up for one and have it running within hours. No more expensive one-time purchases, no more local servers—everything ran from a browser, with a user experience that felt more like a consumer app than a heavy enterprise system. The psychological barrier disappeared: it was no longer a “project” requiring IT approval but simply another tool for getting work done. If it didn’t work out, canceling was easy.
As these solutions gained traction, they started occupying a larger share of businesses’ daily operations. Instead of forcing businesses to adapt to rigid, enterprise-grade software, the software itself began adapting to the business. Features were added over time—automation, integrations, real-time analytics—without the need for complex purchasing decisions. Small businesses weren’t just using better tools; they were gaining advantages previously reserved for companies with full-fledged IT departments.
The AI Era (Software 3.0)
At first—and maybe even now—we didn’t fully grasp what was happening. Developers were quick to adopt AI because they saw how it could accelerate their work, debug code, and automate repetitive tasks. But for most people, AI was and still is just a gimmick: a way to generate funny emails, write mediocre poetry, or chat with a bot that sometimes hallucinates answers. It was clear something big was unfolding, but it wasn’t obvious how or when it would become a real tool that changes how we work. AI isn’t creative, it doesn’t “understand” in a human sense—it produces output that’s, at best, average.
But what developers saw, and continue to see, is how fast AI can write code. You might think, Okay, great for software engineers, but why should I care? My take? It won’t stay limited to developers for long.
Not Just Developers—AI Will Write the Code (…but code will still be written)
Until now, coding was strictly a developer’s domain. No matter how much software improved, you still needed to know how to write and structure code, troubleshoot errors, and manage dependencies. But with AI generating code, the rules are changing. People who don’t know how to program won’t need to. Instead of figuring out how to build automations or integrate different systems, they’ll just describe what they want, and the system will generate the necessary code behind the scenes.
We’re not fully there yet, but it’s clear where this is headed. We’re approaching a point where businesses and non-technical users can request complex software functionality, and AI will build the required logic. This means fewer people will write code manually, while more people will focus on defining problems and needs—letting AI handle the execution.
Developers Will Shift to Building the Infrastructure for AI-Generated Code
If developers won’t be spending their time writing code line by line, what will they do? Their role will shift toward creating environments where AI writes, tests, and executes code autonomously. This will involve:
- Data infrastructure that’s accessible to non-technical users, ensuring that anyone can input and manage information without needing a deep understanding of how databases work.
- Automated code execution environments, so that AI-generated scripts and workflows run without manual intervention.
- Cybersecurity and compliance frameworks tailored for AI-generated software, ensuring the code is secure, reliable, and resistant to malicious use.
The emphasis will move from writing individual features to designing systems that allow AI-generated solutions to function smoothly and securely.
Conclusion: The Shift to Dynamic, AI-Driven Software
We’re at a turning point where software is no longer a rigid tool but something that can be created, modified, and adapted in real-time. Cloud-based subscription software made business applications more accessible, but it still required users to adapt to the system. AI removes that constraint—it can generate code, build interfaces, manage data, and connect systems without human developers in the loop.
Instead of searching for the “right” software, businesses will receive flexible, evolving systems that mold themselves around their needs. Data structures will be intuitive and easy to use without technical expertise, while AI will transform raw information into actionable insights. This isn’t just an improvement over current software—it’s a fundamentally different approach to how software is created, deployed, and managed.
What’s Next? Future Articles on B2C & Web3.0
This article focused on B2B software, where technological change is easier to adopt. But these transformations won’t stop there. In a future article, I plan to explore what happens when AI-generated software becomes available to consumers.
- How will non-business users interact with dynamic, real-time applications?
- What happens when AI-powered systems are woven into everyday life?
- And how does all of this connect to Web3.0—the decentralized, user-driven evolution of the internet?