New Delhi, February 25
Enterprise software is unlikely to be threatened by artificial intelligence, and instead, AI will increasingly be embedded within software platforms to enhance functionality and create value, according to a report by HSBC.
The report stated that AI will function as a component within enterprise software systems rather than replacing them, with software platforms continuing to serve as the primary structure for managing and processing enterprise data and operations.
"Within a full-blown enterprise application, we think AI is destined to be subordinate to the overall software platform. AI encompasses the creative analysis and production of intelligent data, and that data is passed to the software stack to be processed, stored, checked, formatted, presented, or actionized in a deterministic fashion," the report said.
The report highlighted that AI systems, which are inherently non-deterministic and can produce varying outputs, will operate under the broader control of enterprise software platforms.
According to HSBC, intelligent agents powered by AI will play a targeted role within enterprise systems, focusing on specific high-value tasks that are difficult to automate through traditional programming.
"These intelligent agents will likely be relegated, in a targeted fashion, to domain-specific high-value tasks that are difficult to codify and are better handled by a thinking entity," the report said.
The report emphasised that enterprise software will remain central to enterprise operations, and AI will enhance its capabilities rather than disrupt it.
"Thus, we believe that the far majority of enterprise software will not be threatened by AI, but rather AI will be domesticated within the application stack via agents and will create tremendous value in doing so," the report noted.
HSBC also stated that software will continue to play a key role in the adoption and diffusion of AI across enterprises globally.
"We believe software will be the primary mechanism for the diffusion of AI across the world's largest enterprises. Foundation models and vibe-coding are not replacements for software within an enterprise for their main IT platforms," the report said.
The report further noted that enterprise software vendors are already integrating AI capabilities into their platforms using advanced tools and intelligent agents.
The report added that major enterprise-class software companies have been using the same vibe-coding tools to embed distilled intelligent agents into their broad platforms. These AI-powered agents are experts in narrow domains and can be deployed in a controllable fashion that mitigates the native technical hurdles of foundation models.
HSBC said that 2026 is expected to mark a key turning point in terms of monetisation of AI within enterprise software.
The report stated that it sees 2026 as the kick-off for monetisation within software. It noted that the enterprise software vendors themselves are the best positioned to leverage AI within the enterprises responsible for the production of global GDP.
Overall, the report concluded that enterprise software will remain the foundation of enterprise IT systems, with AI being integrated into platforms to enhance efficiency, automate complex tasks, and generate significant long-term value.
- ANI
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