“Despite the AI-driven software stock meltdown, America's largest corporations aren't ditching their core business software just yet. Instead, they're using the moment to squeeze better deals from vendors and "vibe-code" smaller apps and software customizations.
And their efforts could be providing a preview of what comes next, when AI agents drive more workflows on top of that software.
Vishal Talwar, chief digital and information officer of FedEx, said the company isn't "looking at this point for [software] to leave our enterprise."
Yet he sees the uncertainty over software's future, and the advent of AI agents, as a chance to re-evaluate how it is priced. "We're contemplating all of these shifts," Talwar said.
The selloff in software stocks, triggered by the threat that AI poses, has hit shares of companies like Salesforce and Adobe. Investors have questioned whether legacy software vendors that sell to businesses can withstand competition from AI-powered rivals. The selloff has intensified with each new announcement from AI developers.
Still, there are plenty of reasons why corporate technology leaders say that narrative doesn't hold true -- and that they aren't looking to completely replace their business software, which is provided by vendors like Salesforce, SAP and Workday. For one, it isn't easy to do, and in some cases, it simply isn't worth their time.
"We are not looking at [software], for the most part, as systems of differentiation for us," Talwar said, meaning the company's strategy is to put its technology resources into building tools that offer a unique competitive advantage.
Mike Kempe, chief information officer of audit and consulting firm Grant Thornton, said that business software like enterprise resource planning systems are equipped to handle the complexities that large companies deal with. That includes regulatory requirements, multiple geographies and languages -- making it "very challenging to build this using AI today."
There is also the matter of maintenance, Kempe added. Once companies build their own software, they have to keep it updated and dedicate engineering resources toward the effort. "I'd much rather spend our internal dollars and effort building something that is truly cutting-edge and helps us grow," he said.
But there is no denying that AI coding tools and vibe-coding have made it easier than ever to build software in-house. Aiming to tap the potential of AI, 96% of software engineering organizations surveyed by market research and IT consulting firm Gartner offer the use of AI tools to their developers. And over the next two years, Gartner predicts that over 70% of business software developers will use AI agent-based coding tools.
Thimaya Subaiya, executive vice president of operations at Cisco Systems, said the networking-equipment maker replaced a presentation software tool with its own AI agent, saving the company nearly $5 million annually in license costs. Cisco is also looking to replace other software vendors.
---
Belle Lin writes for the WSJ Leadership Institute's CIO Journal.” [1]
1. Firms See Software Surviving AI for Now. Lin, Belle. Wall Street Journal, Eastern edition; New York, N.Y.. 26 Mar 2026: B4.
Komentarų nėra:
Rašyti komentarą