This podcast episode explores the transformative power of AI in software development. Guillermo Rauch, CEO of Vercel, discusses the critical importance of developing the skill of using AI tools effectively and the future of software development by human-AI hybrid teams. The conversation also touches on the incorporation of AI into software products, the business strategy behind AI product development, and the role of open source approaches. Vercel's platform, Next.js, is highlighted as a popular framework for building dynamic user interfaces. The episode also discusses Vercel's approach to software development, the benefits of incorporating off-the-shelf services and APIs, and the empowering of teams to iterate fearlessly through AI tools. The use of vZero, an AI tool for UI development, is explored, along with its potential to enhance developer productivity and up-level skills. The limitations and benefits of AI, particularly in game development and the use of GPTs, are discussed. The strategic and technical considerations for businesses when integrating AI into their products are also explored, as well as the future of software development and the emergence of Software 2.0. The impact of AI on software development and its potential to broaden access and automate software creation is addressed. The role of open source in AI models development and the societal impacts of AI, both positive and negative, are also examined.