Q: On CNBC today Brad Gerstner, who i believe is one of the smart ones out there, said if software companies do not adapt to AI for revenue and profits, they are just about done. What do you think?
Thanks Again
Thanks Again
5i Research Answer:
There will be winners and losers. Certainly software companies need to adapt. They have data on companies and solid relationships. We do not believe customers will simply make wholesale switches to AI right away (too risky). But certainly customers may have options and this could reduce margins and moats for software companies. But many will be able to utilize AI in their own business to fight back. Also, development costs for software companies could fall dramatically, improving profits. BUT...it is a sector in flux, certainly. Sentiment (negative) may not change. Certainly some companies may not react and respond fast enough.