With AI as a Service (AIaaS) projected to expand more than twelve-fold to over $240 billion by 2034, the question is no longer whether to build with AI, but how to build with AI in a way that creates sustainable, compounding value for founders, operators, and investors.This book is the playbook for navigating this transformation - dissecting the AI stack into four interconnected layers (Model, Platform, Application, and Agent-as-a-Service), and offering a practical lens for understanding where value accrues, how unit economics shift, and what makes an AI business durable beyond a wave of hype.The book explores the opportunities and challenges of AI-native software, from the "inference tax" impacting gross margins and the commoditization of foundation models to the shift away from per-seat SaaS pricing models. It also examines the build-versus-buy decision, the rethinking of go-to-market strategies, the rise of AI governance and EU AI Act compliance, and the impact on tech investing as AI startups claim a disproportionate slice of early-stage VC funding.Ultimately, the book argues that the winners will be those who build AI-native architectures from the ground up, rather than bolting on AI features to SaaS products built for a different era, because in this next stage of the AI boom, moats won't come from foundation models, but rather from proprietary data flywheels, deep workflow integration, and governance.
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