The scaffolding era is over. LlamaIndex says context is the new moat

LlamaIndex CEO Jerry Liu says the LLM app scaffolding stack is becoming less important as models get better at reasoning and tool use.

He pointed to MCP, plugins, and code-generation tools as signs that indexing, retrieval, and agent orchestration matter less than before.

LlamaIndex is shifting toward context-heavy capabilities such as document processing and OCR.

Liu urged builders to keep AI systems modular and model-agnostic, since context is becoming the main competitive edge.