AI is forcing software companies to fundamentally reposition themselves

"In recent years, the company has deeply integrated AI into its platform, leading to strong growth in AI-related revenue. According to Zavery, this development underscores that AI creates value primarily when it is integrated into existing business processes and workflows. Software vendors who continue to position AI as a separate functionality or experiment are missing the point of the transformation. For customers, it's not about access to models, but about solutions that are reliable, manageable, and scalable."

"This shift places new demands on software companies. Simply offering AI functionality is no longer enough, especially for enterprise customers. Without built-in security, compliance, auditing, and control, there is insufficient confidence to deploy AI at scale. According to Zavery, this is precisely where the distinction is made between suppliers that will continue to exist and those that will fall behind. AI requires governance and visibility, not just computing power or smart algorithms."

"This development fits into a broader pattern the sector has seen before, during the transition to the web and later to cloud computing. Back then, software companies did not disappear en masse, but there was a clear realignment. Suppliers who did not adapt their technology in time lost relevance, while others grew by embracing the new paradigms. AI now poses a similar test for the adaptability of software companies."

AI functions as a structural component of modern software platforms rather than a standalone tool. Deep integration of AI into platforms drives AI-related revenue and creates value when embedded in business processes and workflows. Positioning AI as a separate functionality or an experiment limits its transformative potential. Customers prioritize solutions that are reliable, manageable, and scalable over mere access to models. Enterprise deployment requires built-in security, compliance, auditing, and control to establish sufficient confidence to scale AI. AI demands governance and visibility in addition to algorithms and computing power. Market realignment will mirror past transitions to web and cloud, favoring adaptable suppliers.

Read at Techzine Global