Carl Pei, the co-founder and CEO of Nothing, envisions a future that moves past the iPhone paradigm, centered on devices driven by AI agents rather than conventional apps. "When it comes to AI in software, people need to realize that apps are going to vanish," stated Pei, whose company designs distinctive smartphones and accessories. "So, for any founder or startup whose core value is tied to an app, that model will be disrupted—it's inevitable."

Pei shared these thoughts during an interview at the SXSW conference in Austin on Wednesday. He has previously discussed an AI-first device concept, a vision that contributed to Nothing securing a $200 million Series C funding round last year. At that time, the company proposed a novel smartphone leveraging AI and personalization technology so precise that users wouldn't feel compelled to verify its outputs. At SXSW, Pei elaborated on this vision and the necessary steps to achieve it. The first phase, currently being trialed by some firms, involves an AI feature capable of executing user commands, such as booking flights or hotels. Pei, however, described this step as "super boring."

The subsequent phase is where the concept becomes more compelling, as the AI begins to understand a user's long-term intentions. For example, if someone aims to lead a healthier lifestyle, the device could provide subtle prompts to support those goals. "Its power truly amplifies when it starts proactively suggesting ideas; you won't have to manually generate them... when the system understands us deeply, it will propose things we didn't even realize we wanted," Pei explained, drawing a parallel to features like ChatGPT's memory function.

In depicting his ideal AI-first smartphone, Pei described a device that acts on your behalf without explicit commands. "Our current phone usage is very outdated. It's pre-iPhone... reminiscent of the Palm Pilot and PDA era. The user experience remains largely unchanged," Pei noted. "We still have lock screens, home screens, and apps. We navigate through different apps, each a full-screen experience, and use an app store to download more. This model hasn't evolved in roughly 20 years."

This stagnation frustrates him, especially as underlying technology has advanced significantly while the products we use daily have not. He pointed out that even simple tasks require navigating numerous steps. "Accomplishing anything on a phone is needlessly difficult," Pei said. "Take grabbing coffee with someone—that's the intention. But to execute it, we must jump through multiple steps and apps. It could involve four different apps: a messaging app, a maps service, a ride-hailing app, and a calendar."

He continued: "I believe the future of smartphones or operating systems should be straightforward: 'I understand you, and if I recognize your intention, I simply handle it for you,' eliminating the need to manually traverse various apps."

"It should all happen through AI," he emphasized. This shift implies devices would feature interfaces designed not for human app navigation, but for AI agents to operate efficiently. Pei clarified that apps won't disappear immediately; Nothing's own OS currently allows users to create mini-apps through vibe coding. However, in the long run, AI must interact with these "apps" seamlessly, without mimicking human actions like tapping through menus. "That isn't the future. The agent shouldn't use a human interface. You need to build an interface specifically for the agent. That's the more future-proof approach," Pei concluded.