AI Splits the Software Industry in Two
💡Ares’ view offers a practical lens for deciding whether AI threatens or strengthens your software product.
⚡ 30-Second TL;DR
What Changed
Investors initially viewed AI as a broad threat to the entire software sector.
Why It Matters
The analysis reinforces that AI is not affecting every software business equally. Founders and product leaders should assess whether AI commoditizes their core feature or strengthens their workflow, data, and distribution advantages.
What To Do Next
Map your product’s features into AI-commoditized versus workflow-defensible categories, then prioritize integrations that deepen proprietary data and user retention.
Key Points
- •Investors initially viewed AI as a broad threat to the entire software sector.
- •Ares Management now sees a bifurcation between software winners and businesses under pressure.
- •AI exposure, defensibility, and product positioning may determine which software companies benefit.
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Original source: Bloomberg Technology ↗
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