”As companies allocate larger budgets towards AI models and agent-building tools, the focus is on where those dollars flow. The early innings of the AI buildout have been defined by building AI compute and capacity, where hardware (i.e. chip) companies have been clear winners. Moving forward, the AI wave will increasingly depend on utilization–how effectively companies convert AI investments into productivity and profit. That transition places software at the center, a sector whose performance has lagged hardware and where AI monetization remains diffuse. Whether the next leg of opportunity comes from software, and what companies within software, will depend on two key frictions: integrating AI into enterprise workflows and finding sustainable ways to charge for it once it’s there.”
Morten W. Langer
