Vercel’s CEO Says Software’s New Users Are AI Agents, Not People

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Guillermo Rauch
Guillermo Rauch, CEO of Vercel, discusses how AI agents are set to become the main users of software, fundamentally altering the way APIs and tools are structured. Stefanie Keenan/Getty Images for Village Global

According to Guillermo Rauch, head of Vercel, the future of software development is leaning heavily towards machines instead of humans. In a recent podcast with Sequoia Capital, he emphasized that the primary users of software are now AI agents rather than developers or non-developers.

Rauch explained that the way code is written has shifted; it’s increasingly tailored to be understandable and usable by AI assistants. ”We’re seeing a monumental shift here,” he noted, reminded that today’s developers need to think about how large language models (LLMs) will navigate new systems.

In this new AI-driven era, software tools and frameworks are bound to evolve with the mechanisms by which LLMs engage with them. Rauch drilled down on the idea that the capabilities and shortcomings of LLMs will influence the architecture of upcoming runtimes, languages, and development tools.

Interestingly, he pointed out that today’s users—a diverse mix of designers, marketers, and AI itself—have grown accustomed to tech that just ‘works’ without hiccups. This represents a drastic cultural change from the past when developers often faced tedious troubleshooting.

Rauch also recognized the immense pressure on product creators today: ”Everyone expects your software to operate flawlessly 99.99% of the time.” Last year, Vercel secured a whopping $250 million in Series E funding led by Accel, along with contributions from Tiger Global and GV.

The Emergence of AI Agents

Looking ahead to 2025, analysts are predicting that AI agents will reshape our digital interactions. The expectation is that while websites and apps aren’t going away, they might not be the frontline for users anymore. Instead, people may rely on AI assistants to sift through information and connect with content.

As analysts point out, if this paradigm shift occurs, the implications could be immense: traditional aggregators might lose relevance, radically transforming our relationship with the digital ecosystem—ushering us into what they call the ”Agentic AI” age.

However, it’s essential to keep in mind that AI isn’t infallible. Researchers have indicated that errors from AI agents can spiral out of control. A study from Patronus AI aimed at optimizing AI technologies illustrated that even a 1% error per step could skyrocket to a staggering 63% error probability after 100 actions.

Fortunately, the integration of protective measures—like content filters and rules—can significantly reduce these risks. Small tweaks can lead to huge advancements in accuracy!

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