"Generative AI is a threat to these applications in two main ways. First, if employees get more efficient using AI tools, companies may not need to buy as many business software subscriptions. That would dent the growth of " seats," or how many subscriptions software companies sell. Each employee has a seat, so if there's no new hiring, growth stalls. The second threat is more existential."
"If AI tools and AI agents get good enough, companies could replace the software they use entirely and instead rely on new AI-powered workflows. And with AI coding tools showing big improvements lately, companies could even develop their own software, without needing to buy it from established vendors. The Anthropic shock This is why Anthropic's recent announcements have hit the software sector so hard. Anthropic's Cowork marks a clear step beyond chatbots."
AI is starting to disrupt business software by making employees more efficient and enabling alternative AI-powered workflows. Improved AI tools can reduce the number of paid software seats companies need, slowing subscription growth tied to headcount. Advanced AI agents and coding tools create the possibility of replacing packaged applications with custom, AI-driven processes or in-house software. Recent developments—an autonomous agent named Cowork, industry-specific Cowork plugins, and a rapidly spreading open-source assistant called OpenClaw—have intensified concerns about whether established software vendors will lose customers or relevance.
Read at Business Insider
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