As someone with their own company, AI doesn't magically make things better. If anything, it makes it worse since you have far more competition from other people who are not good at programming but are good at sales/marketing.
Yes, but you are in a better position to leverage this technology than an employee, the potential value you can extract from AI is higher. Regarding competition, software was never the moat in most cases, so I don't think more software equals more competition, at least not linearly.
It's like with the music industry, it got easier for anyone to make music/release music in theory. Meanwhile for the last 100 years there's mostly been more concentration/consolidation.