Comment by TeMPOraL

It's a desperate attempt at staying relevant, even if most of those companies don't realize it yet. Because of its general-purpose nature, AI subsumes products. Most software products that try to "implement AI in every corner" would, from the user's POV, be more useful if they became tools for ChatGPT/Claude/Gemini.

People's goals are rarely limited to just one software product, and products are basically defined as a bag of tools glued with UI, that work together but don't interoperate much with anything else. That boundary drawn around a bunch of software utilities, is given a name and a fancy logo, and sold or used to charge people rent. That's software products. But LLMs want to flip that around - they're good at gluing things, so embedding one within a product is just a waste of model capabilities, and actually makes the product boundary more apparent and annoying.

Or in short: consider Copilot in Microsoft Word, vs. "Generate Word Document" plugin/tool for a general LLM interface (whether Gemini webapp or Claude Code or something like TypingMind). The former is just an LLM locked in a box, barely able to output some text without refusing or claiming it can't do it. The latter is a general-purpose tool that can search the web for you, scrap some sites and run data analysis on results (writing its own code for this), talk results over with you, cross-reference with other sources, and then generate you a pretty Word document with formatting and images.

This is, btw., a real example. I used a Word document generator with TypingMind and GPT-4 via API, and it was more usable over a year ago than Copilot is even now. Partly because Copilot is just broken, but mostly because the LLM can do lots of things other than writing text in Word.

Point being, AI is eroding the notion of software product as something you sell/rent, which threatens just about the entire software industry :).