How AI Is Redefining the Value of Software

AI is significantly redefining the value of software by increasing the productivity of software engineers, enabling them to produce code at a much faster rate than manual writing. This shift challenges the traditional understanding of value, which has historically been tied to scarcity, as seen with precious metals. The core question now is: if software is no longer scarce due to AI's capabilities, what new factors will determine its value?

This report uniquely frames AI's impact on software value by comparing code scarcity to precious metals, unlike other discussions focusing solely on productivity gains.