The rise of generative AI and agentic AI is rapidly changing how enterprises think about software pricing, value, and long-term technology investments. While market sentiment has recently pressured valuations across software and tech services firms, I believe much of the underlying thesis is misunderstood. The real story is not wholesale disruption, but a gradual yet profound shift in pricing power, delivery models, and how value is measured. A central concern among investors is that AI makes it easier to build software, and therefore existing platforms will be replaced. In practice, this risk is overstated. Enterprise software is deeply embedded in business operations, and the cost of failure from replacing core systems is far greater than the savings from rebuilding them. Even if AI reduces development costs, organizations remain highly risk averse. The potential downside of disruption, compliance failure, or operational breakdown outweighs the theoretical upside of cheaper code. As a result, most foundational software will persist for the foreseeable future.

Full opinion : Future of agentic AI will depend a lot on costs and pricing.