Wix's CEO runs an AI coding giant. He says the tech still gets 'too much credit.'

In a recent episode of the '20VC' podcast, Avishai Abrahami, CEO of Wix, shared his candid thoughts on the current AI landscape, suggesting that the technology is often oversold in Silicon Valley. Abrahami, whose company acquired the AI coding platform Base44, expressed skepticism about AI's potential to replace traditional software and human labor. "I would love to envision a future where our team grows to include a thousand people at Base44, another thousand at Wix, and the rest are AI agents. However, I'm not convinced this is feasible," he stated. Abrahami emphasized that AI receives excessive credit for its capabilities, particularly when it comes to performing complex tasks. He cited a specific example regarding vibe coding, indicating that it remains an imperfect solution. After acquiring Base44 for $80 million last year and investing an additional $200 million, Abrahami conveyed the challenges of implementing sophisticated visual editing tools. "Creating anything intricate is difficult and often frustrating," he remarked. "You can't expect to vibe code something as complex as Shopify, regardless of expertise." Abrahami also mentioned his company's struggles with off-the-shelf AI customer support systems, revealing that they opted to develop their own due to dissatisfaction with existing solutions. He clarified that integrating AI to replace human customer service representatives is not a priority for Wix. He expressed doubts about the ability of large language models (LLMs) to replace white-collar jobs, noting their tendency to make frequent errors. "I wouldn't worry too much about LLMs taking over all white-collar positions. They aren't very intelligent and often make silly mistakes," he remarked. These comments come at a challenging time for Wix, as the company has seen its stock plummet nearly 50%. Investors are increasingly concerned that AI-driven website builders could disrupt Wix's core business. Despite these challenges, Wix has reported double-digit revenue growth from its investment in Base44, setting it apart from other software providers who are grappling with industry-wide fears of a 'SaaSpocalypse.'