"Software stocks, including Salesforce and HubSpot, have slumped this year on concern that AI tools could make it easier for companies and developers to build their own software, rather than buying SaaS services. This "buy versus build" debate has been a hot topic on Wall Street in recent months, with one study warning that over 100 public software companies risk getting squeezed between nimble AI startups and powerful AI-ready tech giants."
""The whole value chain is getting disrupted. The people who will get left behind are not embracing AI fast enough," Friar said. "I don't think it's AI that steals your job or steals your company. It's someone who is using AI deeply that's going to disrupt you.""
""entering the fast fashion era of SaaS very soon.""
AI tools are lowering barriers to internal software development, enabling companies and developers to build bespoke solutions instead of purchasing SaaS products. The software value chain faces disruption as AI accelerates in-house coding capabilities and alters procurement choices. Companies that fail to adopt AI rapidly risk losing ground to competitors that integrate AI deeply. Investor concern over the buy-versus-build shift has pressured software stocks. Analysts warn that many public software companies could be squeezed between nimble AI startups and established, AI-ready tech giants as the market dynamics evolve.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]