So what do companies do about this? If every piece of software can be reverse engineered are all companies just going to move to saas only?

You’ll never run code locally, and only run the official version off their server. Their lawyers will shut down the clones, and their cash reserves will make sure you can never afford pc parts again.

Yes, this is what I fear. I guess I’ll just throw it onto the pile of everything else that AI is going to disrupt.

Are we getting to the point where every API can be reverse engineered too? If so, that's not safe either.

I don’t see how you can have a one-to-one reproduction of code running on a server. At best you can guess at something that provides a similar output, but it’s never going to be the same as the original.

It will be just like the music industry. This is what will happen:

Gaming: This will trigger the return of Stadia-like cloud gaming services.

Apps: Will begin to require online accounts to use them. Even for the most basic of apps and will made into a sass.