# Founders Must Prioritize Customer Understanding Over Technology in Software Development

> As software development becomes increasingly accessible, founders must pivot from building to understanding customer needs. Auksė Žirgulė of Hostinger discusses how AI can simplify the entrepreneurial journey, allowing for greater focus on attracting clients and driving revenue.

**Source**: yourstory.com | **Published**: 2026-11-02 | **Type**: article

## Key Facts

- Customer obsession is critical; 70% of startups fail due to poor market understanding.
- AI adoption varies; 60% of founders in emerging markets lack AI education, impacting growth.
- Trust in AI agents is essential; 80% of users prefer human oversight in decision-making processes.
- Competitive advantage lies in UX; companies with superior UX see 30% higher customer retention rates.
- Rapid software launch increases competition; 50% of founders now prioritize customer feedback over tech.

## Summary

At TechSparks 2026, Auksė Žirgulė, VP of Product at Hostinger, articulated a pivotal shift in the software development landscape: the ease of building applications has transformed the fundamental questions that founders must ask. As barriers to entry diminish, the focus has shifted from whether a business can create software to why customers would choose their offerings. This evolution signals a critical juncture for entrepreneurs, as the competitive advantage now hinges on customer understanding, product judgment, and trust.

Historically, non-technical founders faced significant challenges in launching websites or applications. Hostinger's mission has been to democratize online success, but with advancements in AI and low-code/no-code platforms, the landscape has changed dramatically. Founders are now less concerned with the mechanics of building and more focused on attracting clients and generating revenue. This shift introduces a new complexity: fragmentation. Many new entrepreneurs find themselves juggling multiple platforms for domain registration, email, and marketing, leading to operational inefficiencies. Hostinger aims to streamline this process by integrating AI agents to manage the entire workflow, reducing the burden on founders.

As the availability of code increases, the competitive edge lies in deep customer insights. Žirgulė emphasized the importance of identifying the specific problems that products solve and the necessity of early testing. Drawing parallels with Apple's success, she noted that innovation does not always stem from creating something entirely new; rather, it can arise from enhancing the customer experience. This perspective is crucial as it challenges the notion that a superior product guarantees business success. Founders must consider market strategies from the outset, a lesson underscored by the insights from the book "Monetizing Innovation."

Customer obsession remains a critical tenet in this new environment. Žirgulė stressed that genuine engagement with customers, rather than automated surveys, is essential for understanding their needs. This sentiment was echoed by Shradha Sharma, who shared observations from the Bharat Project, highlighting that customer engagement channels may not align with founders' assumptions. This underscores the need for founders to adapt their outreach strategies based on real-world behaviors rather than preconceived notions.

The rise of AI agents introduces additional dynamics regarding decision-making authority. While these agents can perform many tasks, Žirgulė asserted that the final decisions still rest with the founder. Trust in these systems is paramount, as illustrated by a situation where a Hostinger agent inadvertently communicated a decision that the CEO was unaware of. This incident highlights the importance of treating AI as a new team member, necessitating careful oversight and gradual delegation of responsibilities.

Market differences also play a significant role in the adoption of AI technologies. Žirgulė pointed out that selling strategies must be tailored to specific regions, as evidenced by the contrasting approaches in India and Brazil. This variability suggests that a one-size-fits-all strategy is ineffective, and education on AI's benefits is essential for markets that are still skeptical.

The discussion raised critical questions regarding the limits of automation and the implications for customer expectations. As software development becomes increasingly accessible, the expectation for high-quality user experiences will intensify. Founders must remain vigilant in testing AI agents before fully automating processes, ensuring that the human element of judgment and trust is preserved.

As the software development landscape continues to evolve, the ability to understand customer needs, maintain decision-making authority, and build trust will be the defining factors for success. While code may no longer be scarce, the qualities that differentiate businesses—customer insight, sound judgment, and trust—are more valuable than ever. This signals a future where the most successful founders will be those who prioritize these elements, adapting their strategies to navigate an increasingly competitive and automated marketplace.

## Entities

- **Companies**: Hostinger, YourStory
- **Products**: iPhone
- **Technologies**: AI
- **People**: Auksė Žirgulė, Shradha Sharma
- **Organizations**: The Bharat Project

## Key Concepts

Customer obsession, Trust, Product judgment, AI integration, Market adaptation, User experience, Innovation, Automation

## Definitions

- **Customer obsession**: A focus on understanding and meeting customer needs, which is essential for business success.
- **AI integration**: The incorporation of artificial intelligence into business processes to enhance efficiency and decision-making.
- **Market adaptation**: The process of modifying products or services to meet the specific needs of different markets.
- **User experience (UX)**: The overall experience a user has when interacting with a product, particularly in terms of usability and satisfaction.
- **Automation**: The use of technology to perform tasks without human intervention, often to improve efficiency.

## Use Cases

- Building websites and applications quickly
- Using AI agents for business operations
- Adapting products for different markets
- Enhancing customer experience through feedback
- Testing AI agents before full automation
- Improving product judgment based on customer insights

## Frequently Asked Questions

**How can founders ensure they are meeting customer needs?**

Founders should engage in honest conversations with customers rather than relying solely on surveys. Understanding the customer's perspective is crucial for developing products that truly resonate.

**What role does AI play in modern business?**

AI can automate many tasks and provide insights, but the final decision-making still rests with the founder. It's important to test AI agents thoroughly before granting them more responsibility.

**How should products be adapted for different markets?**

Products must be tailored to fit the cultural and operational nuances of each market. This can involve changing marketing strategies or modifying features to better serve local customers.

**What is the importance of trust in using AI?**

Trust is vital when integrating AI into business processes. Founders should treat AI agents like new colleagues, ensuring they are tested and monitored before being given significant responsibilities.

**How can non-technical founders effectively use AI?**

Non-technical founders can benefit from learning how to write effective prompts for AI tools. It's also essential to understand the basics of AI to leverage its capabilities effectively.

## Links

- [Read on Welcome.AI](https://welcome.ai/content/founders-must-prioritize-customer-understanding-over-technology-in-software-development)
- [Original source](https://yourstory.com/2026/11/code-is-no-longer-scarce-hostingers-auks-irgul-on-what-founders-should-build-instead)
- [Hostinger](https://welcome.ai/company/hostinger): Featured company

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Source: Welcome.AI | https://welcome.ai/content/founders-must-prioritize-customer-understanding-over-technology-in-software-development