For over half a century, software engineering has operated on a foundational premise: human engineers decompose problems, encode decision logic into static code, and manually adapt that code as requirements evolve. This paper argues that the emergence of AI agents – systems where large language models serve as the primary reasoning engine, dynamically generating and discarding code as an instrumental resource – constitutes not an incremental improvement but a fundamental restructuring of the software paradigm. Drawing on first-principles analysis of complexity scaling, we formalize the distinction between traditional software (where code is the carrier of decision logic) and agentic systems (where code is ephemeral tooling for an LLM-driven reasoning loop). We trace the historical arc from licensed software to SaaS to what we term Agent-as-a-Service (AaaS), showing that each shift...