Short answer
Yes, for the right kind of tool, because AI coding assistants have sharply reduced the time it takes to build and change focused applications like trackers, portals and dashboards. The keys to success are keeping the scope narrow, owning the code and data, and having a plan for who maintains it.
A few years ago I would have told a mid-size city that bespoke software was mostly for large agencies with big IT departments, but that has changed, because a small team using modern AI coding tools can now build a working application in the time it used to take to write the requirements. We have done this ourselves at Avero, building our own tools rather than buying another subscription, so I know firsthand both how fast it can be and where the traps are.
The traps are mostly about ownership and discipline rather than technology, which means I would only build something bespoke when the scope is clear, the agency owns the code in its own repository, the data lives somewhere you control, and there is a named person or partner responsible for security updates and changes. I would also keep bespoke tools away from the core ledger and payroll, where proven platforms still make more sense, and use them instead for the workflows that packaged products handle badly.
Done that way, AI turns bespoke software into a practical option for agencies that used to be stuck choosing between an expensive module and a spreadsheet. We write about this often on the Start at Zero Substack, and subscribing is the easiest way to keep up.