AI Could Cut Software Development Costs by Up to 90%, Reshaping Big Tech

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Advances in AI-assisted coding are dramatically lowering the cost and complexity of building software, threatening the business models of companies like Microsoft, Adobe, and Salesforce that have long profited from high development barriers. For decades, enterprise software commanded premium pricing because building alternatives required large engineering teams and years of work, but that calculus is shifting fast. Analysts and developers argue that if production costs fall by 80–90%, entirely new markets become viable and smaller teams in emerging economies can compete with established players. AI-generated code is not without flaws and still requires human oversight for architecture, security, and operations, but the cost reduction need not reach zero to be disruptive. Historical parallels — from digital photography upending Kodak to the internet fragmenting publishing — suggest that even partial cost collapse can fundamentally restructure an industry.

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