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CFO Slice
Corporate software companies are proving more resilient to generative artificial intelligence (AI) than investors initially feared, as deeply integrated systems, complex maintenance requirements, and customer inertia make established platforms difficult to replace with AI-generated alternatives. Salesforce, ServiceNow, Snowflake, and Workday have recently reported strong results, with Salesforce beating sales and profit expectations, raising its outlook, and expanding its Anthropic partnership to integrate Claude into its software. While AI is making software development cheaper and creating competitive pressure, incumbent providers are also incorporating AI into their products and benefiting from their established positions within customers’ IT infrastructure. Longer term, analysts see potentially greater disruption from AI-native software companies, which could pressure established vendors to offer shorter contracts and pricing tied more closely to business outcomes.
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