Market Review and Trends
Get Smart: Is AI Actually “Eating” The Software Industry?
By The Smart Investor  •  February 27, 2026
If you’ve been following the tech headlines lately, you’ve probably heard a pretty scary prediction: AI is going to kill the software industry. The logic feels solid. If a smart AI bot can write its own code, manage your calendar, and organise your database, why would any company keep paying millions of dollars for “old” software platforms? The theory was that these tech giants would simply wither away, replaced by a few lines of clever AI prompts. It makes for a great “doom and gloom” story, but the actual data just came in. And it tells a completely different tale.

The Myth: AI Replaces Software

The pessimists argued that AI would make software a “commodity” – something so cheap and easy to make that it would no longer be valuable. They expected the big software giants to start losing customers and shrinking as businesses replaced expensive subscriptions with DIY AI bots.

The Reality: AI is a Turbo-Booster

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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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