benzinga42d ago
HSBC has downplayed concerns about AI replacing the software-as-a-service (SaaS) sector or an impending “SaaSpocalypse,” predicting instead that software will benefit from AI’s development.The bank’s analysts believe that AI will not overthrow software, but rather be a significant beneficiary of its evolution. They argue that consumer AI platform developers, such as Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), OpenAI, and Anthropic, lack experience in creating enterprise-class software and would face challenges in developing from scratch in complex areas, CNBC reported on Thursday, citing the HSBC note. HSBC also highlighted that it would be neither practical nor cost-effective for companies to rely on AI to build their own in-house software. Even if AI-driven "vibe-coding" produced superior or free software, replacing the established vendors that run the daily operations of global firms would be highly challenging."Software is already eating AI" and would continue to do so, said HSBC. The bank’s research team sees strong demand momentum for the ...Full story available on Benzinga.com