Over 100 Public Software Companies Getting 'Squeezed' by AI, Study Finds

Over 100 mid-market software companies are caught in a dangerous "squeeze" between AI-native startups and tech giants, according to a new AlixPartners study released Monday. The consulting firm warns many face "threats to their survival over the next 24 months" as generative AI fundamentally reshapes enterprise software. The squeeze reflects a dramatic shift: AI agents are evolving from mere assistants to becoming applications themselves, potentially rendering traditional SaaS architecture obsolete. High-growth companies in this sector plummeted from 57% in 2023 to 39% in 2024, with further decline expected. Customer stickiness is also deteriorating, with median net dollar retention falling from 120% in 2021 to 108% in Q3 2024. Read more of this story at Slashdot.

Apr 21, 2025 - 16:09

Over 100 Public Software Companies Getting 'Squeezed' by AI, Study Finds

Over 100 mid-market software companies are caught in a dangerous "squeeze" between AI-native startups and tech giants, according to a new AlixPartners study released Monday. The consulting firm warns many face "threats to their survival over the next 24 months" as generative AI fundamentally reshapes enterprise software. The squeeze reflects a dramatic shift: AI agents are evolving from mere assistants to becoming applications themselves, potentially rendering traditional SaaS architecture obsolete. High-growth companies in this sector plummeted from 57% in 2023 to 39% in 2024, with further decline expected. Customer stickiness is also deteriorating, with median net dollar retention falling from 120% in 2021 to 108% in Q3 2024.