SA asks: How much of a threat is AI to the software sector?

Shares of leading software companies have declined due to concerns that AI may threaten their businesses. Analysts Louis Gerard and Brett Ashcroft Green discussed the implications of AI on the sector. Gerard noted that AI lowers barriers to entry, benefiting smaller teams and potentially disrupting established firms like Adobe and Figma. In contrast, companies like Microsoft and ServiceNow may thrive by leveraging AI. Green emphasized that while AI can create custom software, many companies may prefer established brands for reliability and security. He believes AI will ultimately enhance trusted software rather than replace it.