In 2026, it’s now normal to see someone build a working prototype by typing:

“Create a clean eCommerce app with login, product catalog, cart, checkout, and admin dashboard.”

Minutes later, a functioning product appears.

So the natural question follows:

If AI can build software so quickly, can it replace software agencies?

The honest answer is nuanced:

• AI Vibe Coding will replace some agency work.

• It will not replace software agencies as a category.

• But it will force agencies to evolve—or become irrelevant.

Let’s unpack this with depth, not hype.

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First: What People Really Mean by “Replace”

When people ask, “Will AI replace agencies?”, they usually mean one of three things:

• Replace coding labor (the act of typing code)

• Replace project execution (building and shipping something)

• Replace business outcomes (building the right product that succeeds)

AI Vibe Coding is already threatening #1.
It’s improving at #2.
But #3 is where most of the value—and complexity—still lives.

That’s why the answer isn’t a simple yes or no.

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What AI Vibe Coding Replaces Easily

1) Boilerplate Development and Repetitive Builds

Historically, a large portion of agency work included:

• CRUD dashboards

• Basic authentication systems

• Admin panels

• Standard landing pages

• Common integrations

AI Vibe Coding generates these extremely quickly.

Agencies that priced “hours of coding” as their core value are now exposed.
AI dramatically reduces the economic value of routine implementation.

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2) Early Prototyping and MVP Drafts

In 2026, founders can move from idea → prototype in days.

This reduces demand for agencies that primarily delivered:

• Wireframes

• Basic MVP builds

• Click-to-demo prototypes

AI makes the first version cheap and fast.

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3) Simple Websites and Standard Ecommerce

Template-based service models are under pressure.

When AI can generate:

• A modern website

• Basic ecommerce functionality

• Admin controls

—within a short sprint, the “basic package” business model shrinks.

Yes—parts of traditional agency revenue will disappear.

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What AI Vibe Coding Cannot Replace (And Why)

1) Accountability

AI produces output.
It does not take responsibility.

When an app fails, businesses don’t ask:

“Which AI model did it?”

They ask:

“Who is accountable?”

Agencies exist partly because businesses need:

• Guarantees

• Maintenance contracts

• SLAs

• Escalation paths

• Reliability

AI does not:

• Sign contracts

• Pay penalties

• Protect your reputation

Accountability is a human service.

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2) Product Thinking and Business Context

AI generates code from prompts.
It does not truly own:

• Market positioning

• Pricing strategy

• Funnel logic

• Retention loops

• Compliance obligations

• Internal operational realities

A successful product is not just “an app.”

It’s a system aligned with business reality.

Agencies that understand business outcomes—not just code—remain valuable.

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3) Architecture That Survives Growth

AI generates working software quickly.

But “working” is not the same as:

• Scalable

• Secure

• Maintainable

• Compliant

• Observable

• Resilient

Launching is easy.
Surviving growth is hard.

Systems must withstand:

• Feature expansion

• User growth

• Payment complexity

• Security threats

• Team changes

• Integration sprawl

Without proper architecture, AI-built systems become fragile.

Agencies often make the difference between a demo and a durable product.

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4) Security, Compliance, and Data Responsibility

Many businesses—especially in UAE/GCC markets—operate with:

• Sensitive customer data

• Financial transactions

• Strict regulations

• Contractual obligations

AI can accidentally:

• Expose secrets

• Mishandle PII

• Implement weak authentication

• Store data incorrectly

• Create compliance risks

Security is not a feature.
It is a discipline.

Agencies that master security, DevOps, governance, and compliance remain essential.

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5) Integration Reality (The Messy Middle)

Real-world complexity rarely lives inside the app.

It lives in connecting systems:

• ERP

• CRM

• Payment gateways

• Logistics systems

• Legacy databases

• Identity providers

• Analytics pipelines

• Support platforms

AI can assist—but integrations require:

• Stakeholder coordination

• API negotiation

• Edge case handling

• Failure recovery planning

• Long-term ownership

This is where agencies still earn their fees.

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The Most Important Insight: AI Changes Where Value Lives

Historically, agencies were valuable because:

• Building software was hard

• Writing code took time

• Technical execution was the bottleneck

AI Vibe Coding removes that bottleneck.

So value shifts upward.

From:

• Coding work

To:

• Product strategy

• UX decisions

• Architecture

• Security

• Scalability

• Governance

• Delivery discipline

• Long-term ownership

Agencies won’t die.

But agencies selling “coding hours” will.

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The Likely Future: Agencies Become AI-First Product Studios

1) AI-Orchestrators, Not Code Factories

The new agency skill is not typing code. It is:

• Choosing the right vibe coding platforms

• Defining precise prompts and specifications

• Validating output rapidly

• Enforcing architecture standards

• Managing quality gates

AI becomes the junior team.
The agency becomes the senior brain.

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2) Product-Led Delivery Instead of Feature-Led Delivery

Instead of delivering:

• “Features requested”

They deliver:

• Higher conversion

• Lower churn

• Faster operations

• Reduced support load

AI cannot independently optimize business outcomes.

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3) Quality Assurance Becomes the Differentiator

In an AI world, everyone can build something.

The differentiator becomes:

• Reliability

• Security

• Performance

• Maintainability

• Scalability

Production-grade systems win.

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Who Will Be Most Disrupted?

Highly Disrupted Agencies

• Low-cost website factories

• Basic ecommerce builders

• Simple MVP shops without architecture depth

• Agencies selling developer hours as the product

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Less Disrupted / Strengthened Agencies

• Agencies serving regulated industries

• Enterprise transformation partners

• Agencies with strong DevOps and security expertise

• Agencies with product strategy and UX maturity

• Agencies operating with SLAs and long-term ownership

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A Reality Check: Many AI-Built Apps Will Collapse

There will be a wave of AI-built products that:

• Work for demos

• Break in production

• Crash with real users

• Fail during updates

• Lose data

• Become impossible to maintain

This will create a new market:

“We built it with AI. Now please fix it.”

It’s not hypothetical. It’s already happening.

AI won’t kill agencies.
It will create demand for agencies that can stabilize and scale AI-generated systems.

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The Balanced Answer

AI Vibe Coding Will Replace:

• Routine builds

• Boilerplate coding labor

• Some basic MVP contracts

• Low-skill implementation work

AI Vibe Coding Will Not Replace:

• Accountability

• Product strategy

• Architecture

• Security & compliance

• Integration-heavy systems

• Scalable system design

• Long-term support and evolution

Correct conclusion:

AI Vibe Coding won’t replace agencies.
It will replace agencies that don’t evolve.

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How Royex Fits Into the AI Vibe Coding Future

This is where Royex leads.

Royex is not positioned as a “coding shop.”
Royex is positioned as an AI-first transformation and delivery partner.

Royex Technologies helps businesses by:

• Selecting the best vibe coding platform based on requirements

• Translating business vision into precise AI instructions

• Engineering architecture for scalability and performance

• Implementing strong security and payment systems

• Delivering MVPs rapidly (often within a week) without compromising standards

• Providing long-term upgrades, maintenance, and stability

In a world where anyone can generate code, real value is:

Building the right thing, the right way, and owning it responsibly.

That’s where Royex plays.

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Final Thought: A Thought Leader’s Perspective

AI Vibe Coding is not the end of software agencies.

It is the end of the old idea of a software agency.

The next-generation agency will be:

• AI-augmented

• Outcome-driven

• Security-first

• Architecture-led

• Business-aligned

AI won’t replace agencies.

AI will elevate them.

And the agencies that embrace that responsibility will dominate the next decade.