tech
AI is shaking software. There's a new way to spot which companies are built to survive.
Which software companies can survive the AI era? Barclays highlights the firms best positioned to weather the disruption.
TL;DR
- The software industry is facing significant disruption due to AI.
- A Barclays study analyzed past technology shifts to identify survivor traits.
- Survivors were characterized by healthy profit margins, strong cash generation, low debt, and high employee productivity.
- These traits provide management with more adaptability during industry changes.
- Financial strength and operational discipline may be more important than rapid growth or flashy products in the AI era.
- Barclays identified specific software companies with these resilient characteristics, including AppLovin, Freshworks, InterDigital, Datadog, Veeva Systems, Zscaler, Microsoft, Intuit, PTC, Autodesk, Salesforce, Palo Alto Networks, and ServiceNow.