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Over 100 Public Software Companies Getting 'Squeezed' by AI, Study Finds
Over 100 mid-market software companies are caught in a dangerous "squeeze" between AI-native startups and tech giants, according to a new AlixPartners study released Monday. The consulting firm warns many face "threats to their survival over the next 24 months" as generative AI fundamentally reshape...
Over 100 mid-market software companies are caught in a dangerous "squeeze" between AI-native startups and tech giants, according to a new AlixPartners study released Monday. The consulting firm warns many face "threats to their survival over the next 24 months" as generative AI fundamentally reshapes enterprise software.The squeeze reflects a dramatic shift: AI agents are evolving from mere assistants to becoming applications themselves, potentially rendering traditional SaaS architecture obsolete. Customer stickiness is also deteriorating, with median net dollar retention falling from 120% in 2021 to 108% in Q3 2024.
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