The New Application Layer - Malte Ubl, CTO Vercel

AI engineering serves as the legitimate successor to web development, fundamentally reshaping the software landscape as agents evolve from mere tools into both builders and users of technology. By making previously uneconomical software viable, agents are driving a surge in development, allowing companies to automate "compressed research" and surface underutilized internal data. Effective agent implementation focuses on eliminating tedious tasks—such as support requests or administrative research—to enhance productivity rather than replacing human decision-making. As software usage shifts from traditional UIs to API-driven interactions, infrastructure must adapt to support agent-centric environments. While foundational model development remains concentrated elsewhere, Europe is emerging as a leader in the application layer, where the most significant innovation in AI engineering is currently occurring. This transition empowers engineers to create stable, high-value applications independent of specific model providers.