Humans Buy Platforms. AI Buys Capabilities.

Sean Emory of Avory & Co. explores how AI could change software competition if agents become buyers, not just users, shifting value from platform suites to composable, standalone capabilities.He frames three eras of software: individual tools, integrated platforms, and an emerging era where AI orchestration acts like a new operating system that selects the best capability for a task regardless of UI or vendor.In this model, winning depends less on distribution, brand, and long contracts, and more on reliability, latency, accuracy, security and governance, API quality, cost per call, and task success rates.Sean argues platforms won't disappear. They may become command centers for permissions, compliance, and governance, while features "escape" suites. He walks through examples from Shopify, Shop Pay, Stripe, Twilio, Zoom, Box, Salesforce, Adobe, and HubSpot.Chapters:00:00 AI changes software buying01:44 Three eras of software03:10 Composable software era03:55 Agents versus humans05:06 Orchestrator as new OS07:46 Capabilities escaping platforms08:33 Examples: Shopify, Stripe, Zoom12:28 New scorecard for winners15:32 Two questions for companies17:22 Where this could be wrong19:48 Big picture takeaways23:22 Closing and subscribeListen on:Apple Podcasts: https://podcasts.apple.com/us/podcast/avory-markets-and-investing/id1504555573Spotify: https://open.spotify.com/show/3A8acTyfhhxpUFoFLEKeMJYouTube: https://youtube.com/@avorycoFollow Sean and Avory & Co.:X: https://x.com/avorycoX: https://x.com/_SeanDavidLinkedIn: https://www.linkedin.com/company/avory-coWebsite: https://avoryfunds.comDisclaimerThe content on this channel is for informational and educational purposes only. It does not constitute personal investment advice, a solicitation, or an offer to buy or sell any security. Views expressed are those of Sean Emory and Avory & Co. as of the recording date and are subject to change without notice.Avory & Co. and Sean Emory may hold positions in the securities and companies discussed. Any references to specific companies, products, or services are for illustration only and should not be interpreted as recommendations.Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. Consult a qualified financial advisor before making any investment decision.