AI App Layer Moves Illustrate How Disruptive New Tech Erases Industry Boundaries

Enterprise software equities are said to have lost as much as $1 trillion in market value over the past six or so trading days, as there is concern that language models moving into the application layer of software will successfully substitute a natural language query process for full enterprise software supporting business intelligence, enterprise workflow and function applications (graphics, inventory management, knowledge management, for example). 

Anthropic's Claude features new plugins and features integrated into "Claude Cowork" for tasks in legal, sales, marketing, and data analysis, for example.

These allow AI to automate workflows traditionally handled by specialized SaaS platforms from companies like Salesforce, Workday, SAP, and ServiceNow. 

Many argue this represents a fundamental challenge to the software-as-a-service business model. OpenAI is making a similar push with "Frontier," an AI agent platform for orchestrating tasks across corporate systems.

This trend exemplifies how disruptive technologies often dissolve long-standing boundaries between industries, allowing newcomers from one sector to invade and redefine another. 

Disruptive Technology	Original Domain	Disrupted Industries	Impact
Printing Press (c. 1440)	Publishing/Mechanical Engineering	Scribes, Religious Institutions, Education	Ended elite control over information, spawning bookselling and accelerating the Renaissance, but bankrupting scribes.
Steam Engine (1760s–1840s)	Mechanical Power	Transportation, Manufacturing, Agriculture	Fused energy with industry, urbanizing societies and disrupting horse-based transport, but creating factory jobs.
Electricity/Combustion Engines (1870s–1910s)	Energy Generation	Manufacturing, Communication, Automotive	Blurred energy with production, disrupting horse carriages and enabling global trade, while phasing out older crafts.
Diesel Locomotives (1930s)	Engine Technology	Railroads, Steam Engineering	Erased lines between automotive tech and rail, slashing travel times (e.g., Burlington Zephyr's 1,000-mile non-stop run) and antitrust scrutiny for GM.
Personal Computers/Internet (1970s–1990s)	Computing/Electronics	Media, Retail, Communication	Dissolved barriers between tech and commerce (e.g., Amazon's rise), disrupting print media and creating digital economies.
Smartphones (2000s)	Mobile Telephony	Computing, Photography, Entertainment	Blurred consumer electronics with software, bankrupting Kodak and Nokia while birthing app ecosystems.
Cloud Computing (2000s)	IT Infrastructure	Retail, Data Storage	Erased e-commerce vs. infrastructure, disrupting hardware firms like Dell and enabling startups.
Ride-Sharing Apps (2010s)	Software/Mobile Tech	Transportation, Taxis	Fused digital with mobility, upending taxi monopolies but creating gig economy debates.
Streaming Services (2010s)	Digital Media	Entertainment, Cable TV	Blurred content creation with distribution, eroding cable bundles and empowering creators.
Electric Vehicles (2010s–2020s)	Battery Tech/Automotive	Traditional Auto, Energy	Dissolved auto with renewable energy, pressuring Ford/GM and reducing oil dependence.

Disruptive innovations typically begin by targeting underserved markets or offering simpler, cheaper alternatives, then over time scaling to challenge incumbent value propositions more directly.