The signal-to-noise ratio is going crazy. How do you stand out when there are 10x as many people trying to make the same buck as you? There is so much garbage being created, it's insane.
Or from a users perspective: Why bother looking for software that fits your purpose, when you can just let the AI write one from scratch that does?
A lot of what makes software complicated is that it has to serve thousands of users with different requirements at once. With AI on the other side, that's not something a user has to worry about, they can just let the AI spawn a much smaller special purpose tool that solves exactly the problem they are having.
We might be entering the age of disposable software, where software isn't a product, but just something your AI system produces temporarily in the background for the task at hand.
For example, you tell the AI you're looking to buy an apartment, show some options.
It'll spin up an interactive map with layers of prices, amenities, etc.
Ask it to warp the map projection to show walk-times to metro stations, and it's do that.
Ask it to add some sliders for price range, walk-distance, 'social class', etc.
Ask to book viewings and it'll spin up a calendar, and web form (if it needs more information from you), and then send emails or fill agency booking forms with that data.
All highly personalized, created for the moment, and potentially disposable.
For years the size of the market grew as more as more people came online. The competition also increased. But now it seems the competition is increasing while the market size is stagnating or even shrinking. By competition I mean everything competing for attention.
In software, we often talk about tackling the hardest problems our industry has to offer. In marketing, what you just described is the hardest problem that industry has right now. Somebody who can come up with a viable solution will change the game completely, and not just in software. In music, books, movies, TV, videos, video games, etc.