Goldman Sachs·2025-06-19 09:46Investment Rating - The report assigns a "Buy" rating to several companies including Microsoft, Alphabet, Salesforce, ServiceNow, HubSpot, Adobe, and Intuit, indicating a positive outlook on their potential to capture market share in the evolving software landscape driven by agentic AI capabilities [16][18][19]. Core Insights - The report emphasizes that the next phase of AI-driven productivity gains in enterprises will depend on the effectiveness of agents at the software application layer over the next three years, with current examples primarily being basic chatbots [1]. - The total addressable market (TAM) for software is projected to grow by at least 20% by 2030, particularly in customer service software, which is expected to expand by 20-45% compared to a scenario without AI integration [2]. - SaaS companies are well-positioned to capture a significant share of the new agent TAM, with estimates suggesting that agents will constitute over 60% of the total software TAM by 2030 [3]. Summary by Sections Agentic Architectures - The report defines agents as autonomous AI entities capable of performing tasks, making decisions, and adapting to changes in their environment [22]. - It highlights the importance of distinguishing between traditional chatbots and more advanced agents that exhibit agency and context awareness [22]. The Evolving Software TAM - The report discusses the potential for TAM expansion across various software segments, noting that sectors tied to revenue generation and innovation, such as sales and marketing, have higher expansion potential compared to those viewed as cost centers [2][70]. - It provides a detailed analysis of how agents can drive productivity and enhance the software TAM, particularly in customer service and security operations [70]. SaaS Incumbents vs. New Entrants - The competitive landscape is characterized by SaaS incumbents, AI natives, and platform/model vendors, with the report mapping their strengths and weaknesses against key ingredients for success in capturing the agentic profit pool [8][10]. - It notes that while SaaS companies are adapting to the new agentic landscape, they face risks from new competition based on AI-native tech stacks and pricing model compression [8]. Companies, Strategies, and Case Studies - The report identifies key companies to watch, including Microsoft, Alphabet, Salesforce, ServiceNow, HubSpot, Adobe, and Intuit, each with unique strategies to leverage agentic AI capabilities [16][18][19]. - It emphasizes the importance of innovation pace, domain experience, and value-oriented pricing as critical factors for success in the agentic AI market [8][10].