The software industry is entering a new era—and it may yet prove even more disruptive than the software-as-a-service (SaaS) revolution that preceded it. The emergence of gen AI and, more recently, agentic AI is not just another technology wave; it is a foundational shift redefining what software is, who builds it, who uses it, and how companies are organized and operate. Gen AI alone is projected to unlock $4.4 trillion or more in annual value across the global economy, with software companies poised to capture 10 to 15 percent of that total—and agentic AI may well accelerate the speed at which this value is realized. But capturing it is far from guaranteed, and incumbent companies will face heightened competitive intensity and complex new challenges.
