1321 ET - When it comes to artificial intelligence displacing software, the best defense is a good offense, according to Oppenheimer in a note. "Software suppliers need to be disruptors," the analysts say. "Companies that do not transform the architecture will likely be disrupted." They say software suppliers need to invest in AI-native platforms to first disrupt categories outside of the core business, and then the core business itself, even at the expense of near-term margin dilution. "Agents will work with humans, so software companies need to become the agentic layer for customers and disrupt other categories where the incumbents are innovating at a slower rate," the analysts say. "AI innovation is happening so fast that software companies should also accelerate rearchitecting platform and products with native AI solutions." (elias.schisgall@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 13:21 ET (17:21 GMT)
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