Carl Pei predicts a significant shift in smartphone technology, emphasizing the decline of traditional apps in favor of AI-driven systems.
What observers say
“In terms of AI in software, I think people should understand that apps are going to disappear,” stated Carl Pei, co-founder of Nothing, during his keynote address at the SXSW conference in Austin on March 19, 2026. This bold assertion highlights Pei’s vision for the future of smartphones, where traditional applications may no longer play a central role.
Pei’s remarks come at a time when the smartphone experience has stagnated, with the same elements dominating the market for nearly two decades. He argues that the current app ecosystem may not survive the transition to AI-first computing, as these systems evolve to better understand user intent. “It’s very hard to get things done on a phone,” Pei lamented, pointing to the inefficiencies that have persisted in mobile technology.
As AI systems advance, Pei believes that apps will gradually become irrelevant. He envisions a future where smartphones operate without the need for traditional app layouts or constant user input. Instead, AI agents will simplify tasks, allowing users to interact with their devices in a more intuitive manner. “I know you very well, and if I know your intention, I just do it for you,” he explained, illustrating the potential of AI to enhance user experience.
Nothing, the company Pei co-founded, has recently raised around $200 million in Series C funding, achieving a valuation of approximately $1.3 billion. This financial backing underscores the confidence investors have in Pei’s vision for the future of mobile technology. The company’s operating system currently allows users to vibe code their own mini apps, a step towards the more personalized and efficient smartphone experience Pei advocates.
However, Pei also issued a warning to startups that rely heavily on apps as their core value proposition. He cautioned that such businesses are likely to be disrupted as the landscape shifts towards AI-driven solutions. This disruption could lead to a significant transformation in how consumers interact with their devices and the services they rely on.
As the industry grapples with these changes, the implications for developers, consumers, and tech companies alike are profound. The shift towards AI-first smartphones could redefine the mobile landscape, making it essential for stakeholders to adapt to the evolving technological environment.
With the rapid advancement of AI technologies, the next few years will be critical in determining how smartphones will function and what role traditional apps will play. As Carl Pei continues to push the boundaries of innovation, the tech community watches closely, eager to see how his vision unfolds in the coming years.
