Microsoft CEO’s Shocking Prediction: “Agents Will Replace ALL Software"

I think the notion that business applications exist that's probably where they'll all collapse right in the agent era Microsoft's CEO Satia nadela said apps as we know them are going away in favor of agents and this is a huge statement he basically put a flag in the ground showing where the future of software development is going no more applications which means no more SAS which also means likely far fewer developers so let's watch the video and I'm going to break it down for you so this is on the BG squared podcast I'll drop a link

to the full interview down below SAS applications or Biz apps so let me just speak of our own Dynamics thing the Approach at least we're taking is I think the notion that business applications exist that's probably where they'll all collapse right in the agent era because if you think about it right they are essentially crowd databases with a bunch of business logic okay I'm going to pause there because what he just said might sound like no big deal but it is actually a stunning proclamation of the future what he essentially said is that SAS and

that means software as a service is essentially just a thin UI layer on top of a database and when he says crud that means create read update destroy those are the base units of interactions between between an interface and a database so create create a new record read extract information from the database update make a change to an existing record and Destroy delete so all he's saying is there's going to be the underlying database the fundamental data of what you need and then it's going to be agents that are interacting directly with the database and

if you've been watching this Channel at all you know I've been talking about this for a long time I truly believe the entire application stack is going to disappear there just really is no need for it when you have artificial intelligence interacting with the core grounded data that sits within a database and again what does that actually mean for the entire SAS industry what does that mean for application developers I don't know exactly but I have a feeling it's going to look vastly different than it looks today and I've been in SAS my entire career

I have built multiple SAS companies I've worked for SAS companies and if I'm being transparent I probably wouldn't start another SAS company right now and I probably wouldn't invest in any SAS companies right now either it's just too unknown now that isn't to say there won't be software companies in the future it's just going to look drastically different let's keep watching crowd databases with a bunch of business Logic the business logic is all going to these agents and these agents are going to be multi- repo crud right so they're not going to discriminate between uh

what the back end is they're going to update multiple databases and all the logic will be in uh the AI tier so to speak I'm so excited to show you this video this 3 and a half minute video might be the clearest depiction of what the future of software engineering is going to look like now when he's talking about business logic he basically means taking that core data found in a database and actually doing things with it whether it's updating a CRM record or sending out emails based on different criteria found in the database or

anything any single piece of software that sits on top of a database that is what he's talking about all of that business logic is going to be compressed into the agent the agent will be able to accomplish anything and all you need to do is tell it what you want give me a graph of my top five customers by Revenue okay now write emails to all five of those customers telling them I want to do business with them in 2025 all of this will just automatically be done where previously it would take hardcoded business Logic

on top of the database now that's not necessary you just tell the agent what you want and it will either know how to accomplish it or write tools to go accomplish it on your behalf and when I say tools I just mean it's going to write its own code to interact with the database to send it an email and so on I want to thank the sponsor of this video chatbase chatbase is the ultimate platform for creating and managing intelligent AI agents for your business they are designed to streamline customer support generate leads and enhance

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know that's what you know in fact it's interesting as we speak I think we are seeing pretty high rates of wins on Dynamics backends um and the agent use and we are going to go pretty aggressively and try and collapse it all right whether it's in customer service whether it is in you know uh by the way the other fascinating thing that's increasing is just not CRM but even our what we call finance and operations uh because people want more AI native Biz apps right another thing that he clearly says is the backend doesn't matter

the agents aren't specialized in one type of database they really don't care so really it's about building the database that works most efficiently with the agent is cheapest is the right for The Right Use case so as an engineer or a data provider you really just need to figure out what's the best database to use and then the agents do not care and so it's going to be interesting on how companies choose the database that they decide to use that means the biz the logic tier can be orchestrated by Ai and AI agents so in

other words copilot to agent to my business application should be very seamless now in the same way you could even say hey why do I need Excel like interestingly enough one of the most exciting things for me is Excel with python is like GitHub with co-pilot right that's essentially so what we've done is when you have Excel like this by the way will be fun for you guys right which is you should just bring up Excel bring up co-pilot and start playing with it because it's no longer like oh you know it is like having

a data analyst uh and so it's no longer just making sense of the numbers that you have it will do the plan for you right it will literally like how get up copilot workspace creates the plan and then it executes the plan it this is like a data analyst who is using Excel as a sort of R column visualization to do analysis scratchback so he is saying why do you even need Excel and he probably has thought a lot about this because really what is Excel it is a thin UI layer on top of a

database and of course you can add a bunch of business logic and analytics but here's the thing what he's describing is essentially if AI can write python code to analyze the data why do you need Excel at all and he might be right he probably is right why do you need Excel if I need an analysis of a huge amount of data I just say what I need I just need to describe the end product I need a graph I need a chart I need a 3D visualization whatever it is you just describe the end

result you have the core data the raw data and then the agent writes the python code to actually extract the right data and put it in the right format for what you asked now let's keep watching so it's got a tools you so the co-pilot is using Excel as a tool with all of its action space because it can generate and it has python interpreter that is in fact and by the way when he says python interpreter that just means the ability to execute python code fact a great way to reconceptualize Excel and at some

point you could say hey I'll generate all of excel uh and that is also true after all there's a Code interpreter right so therefore you can generate anything um and so yes I think there will be disruption but so the way we are approaching at least our M365 stuff is one is build co-pilot as that organizing layer UI for AI get all agents including our own agents you can say the Excel is an agent to my co-pilot word is an agent it's kind of specialized canvases which is I'm doing a legal document let me take

it into pages and then to word and then have the co-pilot Go With It uh go into Excel and have the co-pilot go with it this is a fundamental change in how Microsoft applications work and really any soft Ware as a service business this is a complete restructuring of the entire industry and for somebody who has been in SAS for so long it is so fascinating to watch and companies are either going to adopt it and kind of evolve with the times or they're going to die there is no in between and it's clear that

SAA from Microsoft is thinking well ahead he is already very invested into open AI he already has the best model he's already thinking about co-pilot whatever you think about co-pilot and it's quality today at least the structure the architecture of how it's going to work in the future is clear and right in my opinion and so that's the whole video and it's again only 3 and a half minutes but clearly lays out what the future of software will look like all he's talking about is enterprise software business software but at the same time that can

be applied to Consumer as well what's the difference where a consumer it's just a database and you're getting a different type of on top of it and so if you had an agent why do you need the interface at all the future of software development the future of application development the future of interaction with data is going to be drastically different than it is today and I'm so excited for it if you enjoyed this video please consider giving a like And subscribe and I'll see you in the next one