Benzingaยท2025-06-03 18:02Core Insights - BofA Securities analyst Brad Sills reported a decline in software spending growth intentions for the second half of 2025 and 2026, with expected growth rates of +9.9% for 2025 and +10.8% for 2026, down from previous estimates [2] Software Spending Trends - The survey indicates a healthy pipeline for new software projects in 2026, with Data Analytics regaining the top spending priority, followed by Cloud Communications and Videoconferencing, and Security in third place [3] - Categories with higher spending expectations include observability and financials/ERP, while front-office applications like CRM Sales, Marketing, and Support scored lower due to firms reassessing AI priorities [4] AI Investment Insights - Infrastructure and Back Office are identified as the top software categories for AI investment, with Back Office seeing the largest increase since the last survey [5] - After LLMs, Workday Inc was the most selected for Back Office investments, while Salesforce Inc led in front-office AI offerings [5][6] Vendor Preferences - Amazon, Microsoft, and Alphabet's Google were the most frequently selected vendors for AI in infrastructure, while Adobe Inc remains the market leader in AI investments for desktop applications [6][7] - Hiring expectations for 2025 are down, with recession fears impacting spending plans more than tariffs [7]