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AI is going to replace software, or is it?

From American Public Media, this is Marketplace Tech. I'm Stephanie Hughes.

As AI tools become more sophisticated, some analysts believe they could replace traditional

software.

Think project management tools,

customer relationship management technology, maybe even supply chain software. This would upend

the software as a service or SaaS industry, as we know it. I spoke about this with Daniel Newman,

who leads the Futurum Group, a tech research firm. Well, right now, what we're seeing is this incredible pace in which AI is innovating,

and especially in the area of code development and software development.

And this is creating this really interesting inflection right now in the market,

because people are looking at software that for the longest time has been the way we've done things,

which had a very intense and

very skill-specific development cycle. And then, of course, it's had a very specific subset

of companies that have been providing the key software's two enterprises and two businesses.

And AI has sort of created this moment where people are starting to say, well, if we can

develop software that's perfect for us on our own versus maybe using something that was built for

everybody out of the box that takes a lot of customization and also special skills,

there's a lot of questions right now with how much does this change in industry?

So what tools are AI companies offering that might directly compete with

products from traditional software companies? I think first of all, we've got to bifurcate whether

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