San Francisco based entrepreneur Ira Bodnar recently explained how a software update from Anthropic affected the main function of her ad management startup, Ryze AI. The company was created to help businesses give control of their Google and Meta ad accounts to an AI system that manages campaigns automatically.
After AI models Claude and Manus launched a Meta ads connector, Bodnar said on X that the core idea behind her business was removed almost overnight.
She has announced the same on her X.
Before the AI updates, Ryze AI showed strong early growth. The platform gained hundreds of customers within two months and had a deal close rate of about seventy per cent.
After the new AI features were introduced, this rate fell to around 20%. Many potential customers started delaying their decisions, asking why they should pay for a separate tool when a general AI platform they already used could do similar tasks for free.
Bodnar acknowledged the update created a serious challenge for the original product, adding that what they were building began to feel less meaningful. She noted that Claude can currently analyse data but cannot make direct changes inside ad accounts and does not yet connect to Google Ads, though she expects these features to arrive soon.
To prepare for this shift, Ryze had already started changing its strategy. The company is now focusing on helping advertising agencies manage complex work across many clients and accounts at scale, an area that current AI tools still struggle to handle.
She also predicted that ad creative tools for small and medium sized businesses may become less useful as Meta and Google add built-in creative tools inside their ad platforms. According to Bodnar, only high quality creative services designed for large advertisers are likely to remain strong as this shift continues.
Bodnar also pointed to the Model Context Protocol, or MCP, which allows AI models to connect with outside services, as an important future challenge for software companies. She said MCP could work like a new kind of app store, but with one key difference.
In this system, the AI chooses which tool to use, so people may not see or compare different software options themselves. Bodnar warned this could change how startups gain visibility and reach customers in the future.
