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.
"Obviously, you don't want to spend too much on this solution, and it can be expensive because the model itself is pretty expensive, but at the same, you don't want to make that number too small, because like in some in a lot of ways, I think every dollar into this system, you know, is like more than one dollar out."
We observe noticeable growth spikes in AI-generated code soon after key generative AI releases such as GitHub Copilot, the original ChatGPT, and GPT-4.0, highlighting how breakthroughs in LLMs prompt rapid uptake by developers worldwide.