Technical Deflation

Overview Technical deflation describes how advances in AI and tooling make software development cheaper and faster, leading startups to postpone building now and wait for even lower costs, which can impact decision making and market dynamics.

Key Takeaways

• AI models lower the barrier to building functional applications.
• Faster development speeds enable startups to compete with incumbents quickly.
• The temptation to delay building can lead to missed market opportunities.
• Understanding technical deflation helps leaders make timely product decisions.

Who Would Benefit

• Engineering managers evaluating product timelines.
• Startup founders deciding when to launch.
• Technical leaders managing innovation pipelines.
• Teams assessing the impact of AI tooling on development.

Frameworks and Methodologies

• None specific; references to AI-assisted development and rapid prototyping.