Friday, January 16, 2026

Eight Software Markets Poised for Unique Transformation by AI

The Rise of Industrial Software: Key Insights

Chris Loy’s recent article dives into the evolving impact of agentic coding on software production, revealing significant implications for multiple markets.

  • Jevons Paradox: Loy connects the debate around industrial software to this economic principle, highlighting its effects on production quality and quantity.
  • Market Dynamics: Software isn’t a monolith; it consists of distinct markets with varying constraints and demand factors.
  • Internal Tools: The rise of agentic coding can make previously overlooked internal tools feasible, creating a vast backlog of projects ready for innovation.
  • Democratization of Software Creation: Non-programmers can now build tools for themselves, revolutionizing accessibility.

Key Challenges:

  • Quality Variability: While industrial software can increase production speed, the quality may be uneven across markets.
  • Regulatory Constraints: Areas like medical devices and government software may lag due to stringent regulations.

Are you ready to explore how these changes might affect your industry? Join the discussion and share your thoughts!

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