Snap's CEO says AI will push companies to focus less on software building — and more on getting noticed

Evan Spiegel, the CEO of Snap, has shared insights on how rapidly evolving AI technology is transforming operations within the company. During his recent appearance on the "Cheeky Pint" podcast, Spiegel revealed that AI is now responsible for generating over two-thirds of new code at Snap. He attributed this significant change to advancements in AI tools, particularly highlighting Anthropic's Claude. Spiegel emphasized the speed at which these AI models are improving, stating, "Claude is transforming software development, full stop, at Snap in every part of our organization. This progress has occurred in a remarkably short time. The rate at which these models are getting better is just extraordinary." As a result of these advancements, Spiegel foresees a shift in how companies allocate their resources. With software development becoming increasingly streamlined, he predicts that businesses may redirect funds away from engineering towards enhancing product visibility and distribution. He stated, "I think people are going to reallocate more resources away from things like software engineering, for example, to distribution in order to grow faster." This perspective reflects a broader trend observed across major corporations in the U.S., where firms like Amazon and JPMorgan are increasingly utilizing AI to automate aspects of coding. Additionally, companies—including Anthropic—are ramping up investments in communication, sales, and AI infrastructure. The outcome of this shift is a reduction in coding bottlenecks and intensified competition for consumer attention. "It's hard as a brand today to get visibility, to get traction," Spiegel noted, highlighting the growing importance of standing out in a crowded market. Snap has chosen not to comment further on this topic.