Software companies are pushing back against claims that artificial intelligence will replace traditional software, arguing that the industry is evolving rather than disappearing.
Oracle executive Mike Sicilia rejected fears that AI-powered startups could destroy the software-as-a-service (SaaS) model, saying established firms are rapidly integrating the technology.
Sicilia said AI tools could threaten software providers only if they ignored them. Instead, companies like Oracle are adopting AI aggressively to develop new products.
Investor concerns intensified after AI startup Anthropic launched plugins for its Claude assistant, triggering a nearly $1 trillion sell-off in software stocks last month.
Executives at Salesforce argue their platforms remain essential because they manage vast proprietary customer data and help enterprises deploy and govern AI agents.
Meanwhile, Nvidia CEO Jensen Huang dismissed predictions that AI will replace software, calling the idea “illogical.”
Analysts say companies with deep, exclusive datasets—such as financial, legal, or operational records—hold a powerful competitive moat in the emerging AI ecosystem.
Despite disruption risks, many investors believe AI will ultimately boost productivity and innovation, giving software firms opportunities to reinvent themselves rather than fade away.
