Will Your Favorite Apps Work on New AI Devices?
▼ Summary
– Major tech companies are racing to develop AI operating systems for devices, aiming for a future where AI agents can act on a user’s behalf without direct app use.
– This shift threatens the traditional app-based business model by separating companies from users, potentially stripping away opportunities for ads, upsells, and loyalty building.
– App developers like Uber and DoorDash are historically reliant on keeping users in their apps and are therefore reluctant to grant access to AI agents from smaller startups.
– The tension mirrors historical platform-developer relationships, where companies like Apple provide reach but take a significant revenue cut, creating a complex dynamic for AI integration.
– Despite resistance, some major companies are cautiously partnering with larger AI platforms like ChatGPT and Alexa+, indicating a split industry approach to the new technology.
The arrival of new AI-powered devices promises a future where digital assistants handle tasks for us, but this shift could fundamentally disrupt how our favorite apps and services operate. Major tech firms like Amazon, Meta, and OpenAI are developing the underlying “operating systems” for these smart devices, aiming for a world where AI agents act on a user’s behalf without needing to open a specific app. While this offers incredible convenience, it poses a significant threat to the traditional business models of countless consumer tech companies that rely on direct user engagement.
Today, companies such as Uber and DoorDash depend on keeping you within their applications. This environment allows them to display advertisements, promote additional services, and cultivate brand loyalty. An AI agent that simply books a ride or orders groceries strips away that crucial interaction. Even if the core transaction occurs, the company loses the chance to upsell or build a direct relationship. As investor Anjney Midha notes, businesses without deep control over their product’s supply chain will find it challenging to thrive when an AI intermediary stands between them and the customer.
This tension highlights a recurring dilemma in tech history. Building a successful operating system requires a vibrant developer ecosystem, but the relationship is often fraught. Apple’s App Store, for instance, provides massive reach for developers but also claims a substantial commission on sales. The emerging conflict centers on who controls the user experience and the valuable data it generates. Larger app developers are understandably hesitant to cede this control to AI agents from smaller startups.
The startup Rabbit experienced this resistance firsthand. When developing its R1 device, major players like Uber declined to provide official API access, forcing Rabbit to create technical workarounds. As CEO Jesse Lyu pointed out, these companies monetize through advertising and user engagement within their own apps; partnering with a small AI device maker simply wasn’t a priority. Similarly, Perplexity faced legal action from Amazon over an AI shopping agent that scraped the retail giant’s site, underscoring the fierce competition to own the AI-assisted shopping experience.
However, not all companies are taking a defensive stance. Several prominent services are experimenting with partnerships on larger AI platforms. DoorDash, Instacart, and Expedia are building early AI app experiences within ChatGPT. Meanwhile, Ticketmaster, Uber, and OpenTable have introduced agentic features for Amazon’s Alexa+. These collaborations suggest a cautious optimism. Many tech firms see potential in novel, AI-intermediated experiences that could actually enhance their service rather than completely replace the app. The coming years will determine whether this new paradigm fosters cooperation or fuels further conflict between AI platforms and the apps we use every day.
(Source: Wired)
