More than 50% of enterprises’ current software could be replaced by AI, the CEO of Mistral AI told CNBC on Wednesday, potentially adding to investor concerns over software stocks. The comments by Arthur Mensch, CEO of Mistral AI, come after a sell-off in major software names that was sparked in part by Anthropic’s Cowork product as investors grow increasingly worried that AI can do more of what current enterprise software does. Investors fear AI could eat into so-called software as a service, or SaaS, business models. The iShares Expanded Tech-Software Sector ETF, which counts names such as Microsoft and Salesforce among its top holdings, is down more than 20% this year. In India, major software stocks like Tata Consultancy Services and Infosys have also fallen. “I would say more than half of what’s currently being bought by IT in terms of SaaS is going to shift to AI,” Mensch told CNBC at the India Accelerates event on the sidelines of the AI Impact Summit in New Delhi, India.

Full report : Arthur Mensch, CEO of Mistral AI, said more than 50% of current software in an enterprise could be replaced by AI.