Nothing CEO Carl Pei predicts apps will fade as AI agents take over smartphones

Carl Pei, co-founder and CEO of Nothing, envisions a future in which smartphones move beyond the traditional app-based model and instead rely on AI agents to perform tasks on users' behalf.

"In terms of AI in software, I think people should understand that apps are going to disappear," Pei said during an interview at the SXSW conference in Austin on Wednesday. "So, if you're a founder or a startup and your app is like where the core value lies, that will be disrupted whether you like it or not."

Pei has previously discussed the concept of an AI-first device, a vision that helped Nothing secure its $200 million Series C funding round last year. At that time, the company presented the idea of a new type of smartphone built around AI and personalisation technology that would be accurate enough for users to trust its outputs without needing to verify them manually.

At SXSW, Pei expanded on this concept and outlined the steps required to reach such a future.

The first stage, which some companies are already exploring, involves AI features that can execute specific commands on users' behalf, such as booking flights or making hotel reservations. However, Pei described this phase as "super boring."

The next phase, he suggested, would involve AI systems developing a deeper understanding of users' long-term intentions. For example, if someone wants to improve their health, the device could proactively provide suggestions and guidance to help achieve that goal.

"I think it gets even more powerful when it starts surfacing suggestions for you; you don't have to come up with an idea manually…when the system knows us so well, it will come up with things that we don't even [know] we wanted," Pei said, drawing a comparison to features like memory capabilities in conversational AI systems.

When describing what an AI-first smartphone might look like, Pei said it would be a device that performs tasks automatically without requiring explicit instructions.

"The current way we use phones is very old-school. It's pre-iPhone…there used to be Palm Pilots and PDAs back in the day. And if you think about the user experience, it's still very similar," he said. "You have lock screens, home screens, and apps. You browse different apps. Each app is like a full-screen thing. There's an app store where you can download more apps. So it hasn't really changed for like, 20 years."

Pei expressed frustration that while the underlying technology has advanced significantly, the way people interact with their devices has remained largely unchanged. Even simple tasks often require navigating multiple applications and steps.

"It's very hard to get things done on a phone," he said. "Let's say we want to grab coffee. That's an intention. But to execute that intention, we have to go through so many different steps and so many different apps. It's probably like four apps to grab coffee with somebody — some messaging app, some maps, Uber, calendar."

He continued by suggesting that future smartphones and operating systems should be capable of understanding user intent and executing tasks seamlessly.

"I think the future of smartphones or operating systems should just be: 'I know you very well, and if I know your intention, I just do it for you,' instead of having to go through all the apps manually."

"It should just do it through AI," he added.

This vision also implies a shift in interface design. Instead of interfaces built for human navigation across apps, future systems may be designed primarily for AI agents to operate efficiently.

Pei clarified that apps will not disappear immediately. Nothing's own operating system currently allows users to create small applications using its "vibe coding" feature. However, he believes that over time, AI systems will need to interact with software more seamlessly and efficiently, rather than mimicking human actions like tapping through menus.

"That's not the future. The future is not the agent using a human interface. Please create an interface for the agent to use. I think that's the more future-proof way of doing it," Pei said.