The Shift to the Application Layer for AI

For a while, the prevailing thought was that AI would primarily exist as a wrapper around existing applications. However, companies like Perplexity and Cursor are demonstrating a shift towards embedding AI directly into the application layer.

Perplexity: AI-Powered Search

Perplexity is reimagining search with AI at its core. Instead of just providing links, it offers direct answers and summaries, effectively integrating AI into the search experience.

Cursor: AI-Assisted Code Editor

Cursor is transforming the coding experience by deeply integrating AI into the code editor. Features like AI-powered code completion, debugging, and refactoring are becoming integral parts of the development workflow.

Disproving the AI Wrapper Thesis

These examples, and many others, suggest that the AI wrapper thesis is becoming less relevant. Instead of simply wrapping existing applications, AI is becoming a fundamental component of new and existing software.

This shift has significant implications for how we build and use software. It suggests a future where AI is not just an add-on, but an integral part of the application layer.