Dan Shipper, the founder and CEO of Every, recently published an article on Every’s official website where he utilized Excel to explain his perspective on the future of AI. The content is as follows:
The most iconic software product of the last few decades has been the spreadsheet.
Before Excel, there was VisiCalc, which is often regarded as the first killer app for computers. It transformed how professionals operate, becoming so essential that individuals purchased computers solely to use it. Throughout the 1980s, companies fought fiercely for dominance in the spreadsheet market. New challengers like IBM’s Lotus-1-2-3 gained traction, and when Microsoft launched Excel in 1985, VisiCalc faced significant competition. With the debut of Windows 3.0 in the 1990s, Excel ultimately dominated the spreadsheet industry and has maintained its lead ever since.
Excel is popular not only because it is user-friendly for beginners—allowing users to simply input data into cells—but also due to its powerful capabilities. Experienced users can leverage it for everything from intricate financial modeling to data analysis, visualization, and even video game development.
Originally created for business users in finance and accounting, Excel’s versatility has made it a ubiquitous tool used across various sectors. Furthermore, it has inspired numerous entrepreneurial ideas. By identifying customers with manual processes in Excel, one can create a SaaS application tailored to their needs.
Stripe’s Patrick McKenzie once encapsulated Excel’s generative potential, stating, “One of my favorite signs of unmet software need is whenever I see an Excel spreadsheet being passed around employees; that’s when SaaS Angels (Investors) will take flight.”
Venture capitalist Tomasz Tunguz was among the first to observe that, over the past 15 years, Excel had been unbundled into applications like Asana, Looker, QuickBooks, and many others. However, this unbundling can only occur if Excel becomes popular enough for users to seek dedicated alternatives. For this to happen, Excel must achieve broad adoption among advanced users who employ it for specialized workflows beyond its initial design.
Once these workflows are established, advanced users may discover inefficiencies or functionality gaps in their processes. This realization leads to a demand for purpose-built tools, creating an opportunity for B2B SaaS to expand into a $327 billion market.
Just as Excel paved the way for the B2B SaaS era, universal chatbot applications like ChatGPT, Claude, and Gemini are likely to usher in a new wave of startups for a new generation of computer users. Similar to Excel, AI chatbots blend user friendliness with powerful features. They are also on track to becoming universally accessible, and this will happen sooner rather than later.
Today, users of artificial intelligence are increasingly familiar with the fundamental components of AI software: prompts, contextual windows, few-shot learning, and multi-modality. They will utilize ChatGPT or Claude to build customized workflows tailored to their specific niches. As they do so, they gain insights into how to enhance these workflows—making them better, simpler, more cost-effective, faster, and safer.
This opens up opportunities to break down these workflows into completely independent applications. As the adoption of large language models (LLMs) continues to rise, so too do the opportunities for startups.
I have witnessed it firsthand. About a month ago, we launched Spiral, an AI application that automates repetitive creative tasks such as publishing posts on X, LinkedIn, and generating headlines and product launch notes. It already has over 3,500 users and is growing daily.
Essentially, Spiral acts as a prompt builder. The back end employs Claude, meaning that anything achievable on Spiral can also be done on Claude.
However, Claude’s chat interface isn’t optimized for the tasks that Spiral excels in. In Claude, it becomes challenging to manage complex prompts that require specific input to generate quality results. Sharing tips discovered with your team is also cumbersome.
Spiral provides a more effective interface for certain workflows: for creatives and business professionals looking to adapt their content across various mediums. Its popularity is largely due to users who have been accustomed to prompting ChatGPT for similar tasks with Claude over the past couple of years. They were ready for a purpose-built solution.
The term “Shelter AI” has always carried a derogatory connotation, implying that specially developed AI tools are unnecessary when general-purpose chatbots like ChatGPT or Claude can deliver satisfactory results.
Contrary to this belief, ChatGPT and Claude actually heighten the demand for specialized tools, as users seek applications that fulfill needs beyond what general-purpose tools can provide.
In reality, rather than stifling startups, ChatGPT and Claude present an excellent opportunity to uncover entrepreneurial ideas.
If you aspire to launch a business in the age of artificial intelligence, pay close attention to how you engage with ChatGPT or Claude. If you’re repeatedly performing a task and garnering impressive results, there’s a high likelihood that it could evolve into a standalone application.
Source:Every
Exploring the Future of AI through the Lens of Excel
The Legacy of Excel: A Foundation for Unbundling
The spreadsheet has undoubtedly been one of the most iconic software products of the past few decades. Excel, which emerged in the 1980s, evolved from earlier spreadsheet programs like VisiCalc and Lotus-1-2-3. Microsoft Excel revolutionized professional work, leading businesses to invest in personal computers solely to use it. Its significance is such that it’s often referred to as one of the greatest killer applications ever.
From Functionality to Versatility
Initially designed for finance and accounting tasks, Excel quickly grew into a versatile tool for a range of industries. Its architecture allows both beginners and advanced users to perform operations from straightforward calculations to complex data visualizations and even video game development. This remarkable versatility has led to an strong entrepreneurial ecosystem, where identifying inefficiencies within Excel workflows can inspire the creation of specialized SaaS applications.
Excel’s Impact on the B2B SaaS Market
Excel’s generative capabilities have become a hallmark for identifying unmet software needs. Venture capitalist Tomasz Tunguz noted how Excel has been “unbundled” over the past 15 years, evolving into a myriad of applications like Asana, Looker, and QuickBooks. The key to this unbundling was Excel’s predominant adoption among advanced users who began utilizing it for a wider array of tasks, inadvertently creating demand for dedicated replacements.
The Rise of AI: A New Era for Startups
Just as Excel heralded a burgeoning B2B SaaS market, the emergence of universal AI chatbot applications such as ChatGPT, Claude, and Gemini is paving the way for a new generation of startups. These AI tools, much like Excel, combine user-friendly interfaces with powerful functionality, making them highly accessible.
Empowering Users through Contextual Learning
With a growing familiarity surrounding the fundamental aspects of AI—like prompts and multi-modality—users are empowered to mold chatbots into tailor-made workflows that cater to unique requirements. This process not only streamlines operations but also spurs innovative ideas for refining these workflows.
Opportunities for Unbundling AI Workflows
As AI chatbots gain traction, a massive opportunity emerges for independent applications targeting distinct workflows. The continuous integration and advancement of large language models (LLMs) are expected to create a $327 billion market for B2B SaaS solutions. This represents a promising landscape for entrepreneurs ready to capitalize on AI ‘unbundling’—a concept rooted deeply in Excel’s legacy.
Real-World Application: The Launch of Spiral
Reflecting these trends, Spiral, an AI app designed to automate repetitive creative tasks, has seen impressive growth since its inception. By using AI seamlessly, Spiral effectively manages content for platforms like LinkedIn and automates the creation of product launch notes for a rapidly expanding user base. In less than a month, Spiral amassed over 3500 users, demonstrating the demand for purpose-built tools.
Spiral: A New Kind of Interface
While operating on Claude’s backend, Spiral distinguishes itself with a user-friendly interface specifically geared towards managing complex prompts. In contrast, Claude’s traditional chat interface can make it challenging for users to maintain organized workflows and share tips seamlessly with team members.
Understanding the Concept of “Shelter AI”
The term “Shelter AI” often carries a negative connotation, suggesting that specialized AI tools will fail against widely available general-purpose chatbots. However, Dan Shipper argues that the extensive use of AI tools like ChatGPT and Claude actually amplifies the need for bespoke solutions, thereby creating fertile ground for innovation.
Identifying Opportunities in Everyday Tasks
If you’re considering launching a business in the AI era, observe your usage of ChatGPT or Claude. If there’s a repetitive task yielding impressive results, it could very well evolve into its own app. The unbundling opportunities created by AI empower novice and experienced entrepreneurs alike to explore niches that have remained untapped.
Case Studies: Successful Unbundling Examples
| Startup Name | Founded | Core Function |
|---|---|---|
| Asana | 2008 | Task and project management |
| Looker | 2012 | Data analytics and business intelligence |
| QuickBooks | 1983 | Financial management |
| Spiral | 2023 | Automating creative tasks |
Benefits of Unbundling AI Workflows
- Increased Efficiency: Tailored applications streamline specific workflows.
- Enhanced User Experience: User-friendly interfaces cater to unique tasks.
- Potential for Innovation: Specialized tools open the door for new startup ideas.
- Market Opportunities: Unbundling leads to a growth in the SaaS market.
Practical Tips for Entrepreneurs
- Analyze your recurring tasks to identify potential unbundling opportunities.
- Focus on user experience and create interfaces that simplify complex workflows.
- Stay informed about emerging AI technologies and their applications in various industries.
- Leverage feedback from users to continuously improve your product.
Source: Every