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AI & Product

Software Costs Approach Zero

LLMs are collapsing development costs and inviting domain experts to become technical founders.

đŸŽ„ Video Recording: Watch the related talk I gave at CeADAR: View Presentation.

Software development is undergoing a revolution. Imagine a world where anyone with a good idea can bring it to life regardless of their coding skills. Large Language Models (LLMs) are reshaping the economics of software development in ways that extend far beyond simple code generation.

Much like electricity in the early 20th century, they represent a general-purpose technology transforming not just how we work, but what work is possible. When electricity first replaced steam engines in factories, the immediate benefit was efficiency. Individual electric motors were more powerful and reliable than a single central steam engine. The real revolution came when factories no longer had to organize around that central power source. With independent power at each machine, layouts could match workflows, enabling entirely new manufacturing processes and dramatic productivity gains. Imagine a modern robotic assembly line powered by steam—it simply doesn’t work.

The transformation went even further: electricity enabled entirely new technologies—from computers to medical devices—becoming so embedded in daily life that we hardly notice it.

We’re at a similar juncture with AI and LLMs. Today we mostly see them as tools for generating code or content, but their true potential lies in enabling entirely new capabilities and industries. As electricity spawned innovations like MRI machines and smartphones, AI is already transforming fields from medical diagnosis to architectural design.

We’re moving toward a future where AI is as ubiquitous as electricity—complex technical tasks become accessible to anyone with domain expertise, and new businesses emerge as barriers to creation crumble.

This article explores how the dramatic reduction in development time and costs gives domain experts a path to becoming technical founders, and what that means for the future of technical professions.

The Shifting Economics of Software Development

Software development involves significant upfront investments of time, money, and specialized expertise. Every project incurs costs before it delivers any return, and viability hinges on whether those returns can exceed what’s spent. The same logic applies to individual tasks—UI creation, algorithms, database design—and to entire products.

Cost vs Value Map

$0$0$20$20$40$40$60$60$80$80$100$100Operational CostBusiness RewardUNPROFITABLE ZONEPROFITABLE ZONE
Profitable (ROI > 1)
Unprofitable (ROI < 1)
Break-even

Projects with niche audiences or uncertain returns were often infeasible because even small tasks requiring specialized expertise could blow up the budget. LLMs attack that problem by cutting costs everywhere:

  • Time investment: Forget hours on boilerplate—an LLM can deliver a React component or a Python script in minutes.
  • Expertise requirements: You no longer need to master every framework. Need a REST API but don’t know FastAPI? Let the LLM handle it.
  • Resource allocation: A single developer, aided by an LLM, can cover work that used to require experts across domains.
  • Implementation complexity: No more endless documentation dives. LLMs generate API calls, explain auth flows, and troubleshoot issues.

By lowering the cost and complexity of individual development tasks, LLMs drop the viability threshold for a wide range of projects.

The Long Tail of Software Opportunities

Beyond cutting costs, LLMs are changing who can build software. We’re seeing a long tail of hyper-specialized applications emerge not just because they’re cheaper, but because the technical barrier has fallen.

Market Specificity (Long Tail)Revenue PotentialBig TechGoogle, MetaEnterpriseB2B SaaSNiche ToolsVertical SaaSHyper-NicheIndividual scripts← Min. Viable Market SizeDevelopment Cost Barrier

Domain experts—people who deeply understand specific problems but have limited coding experience—can now bring their ideas to life. Examples include:

  • A clinical psychologist developing a specialized intervention app rooted in years of research.
  • A veteran teacher creating adaptive learning tools for students with specific learning disabilities.
  • Independent researchers building custom analysis tools for niche datasets.

These once-unfeasible ideas are becoming real. Domain experts hold the insight; LLMs provide the technical execution, covering entire workflows and countless subtasks. No need to become a professional developer, hire expensive engineers, or find technical co-founders. Experts can guide development directly while AI handles the heavy lifting.

My own work on Qache underscored this shift. With limited experience in blockchain, React, or smart contracts, I still built a functioning platform by combining domain knowledge with LLM assistance—something that would have been impossible just a few years ago.

The implications:

  • Innovation: The best solutions often come from those closest to the problem. LLMs unlock that potential by removing technical barriers.
  • Economics: The bar for viable software projects has plummeted. A vibrant long tail of specialized applications benefits individual entrepreneurs and organizations alike, addressing problems that were once out of reach and serving niche markets that were previously unserviceable.

LLMs don’t simply make development faster—they expand who can create and what’s possible. That’s a fundamental shift in the innovation landscape.

Conclusion

LLMs are not just another tool; they’re reshaping software development. We’re entering an era where imagination, not technical skill, is the limiting factor. Barriers are crumbling, opening huge opportunities for domain experts with compelling ideas and for developers seeking to multiply their impact. The future of software looks more inclusive and more innovative than ever.

Author

Written by Alex Sterling

Data Scientist & Photographer exploring the intersection of light and logic.