More than 50% of enterprise software could switch to AI, Mistral CEO says

Core Insights - More than 50% of current enterprise software could potentially be replaced by AI, raising investor concerns over software stocks [1][2][4] - Major software stocks, including those in the SaaS sector, have experienced significant declines, with the iShares Expanded Tech-Software Sector ETF down over 20% this year [3] AI Impact on Software - The CEO of Mistral AI indicated that a shift from SaaS to AI is underway, with enterprises able to develop software rapidly using AI [4][6] - There is a "replatforming" trend where businesses are looking to replace outdated IT systems with AI solutions, which are seen as more efficient and cost-effective [7][8] Market Dynamics - Mistral AI is experiencing increased interest from over 100 enterprise customers looking to replatform their IT systems [7] - Workflow software is expected to face significant disruption from AI, while systems of record that support data management will remain essential [9] Expansion Plans - Mistral AI plans to open its first office in India, targeting both public and private sector customers [10] - The company aims to partner with existing firms in India to leverage local infrastructure, aligning with the Indian government's push for domestic data storage [11]