The rise of AI doesn’t mean the end of software companies, but it certainly marks a turning point for the sector. According to Amit Zavery, COO of ServiceNow, the software industry will not be wiped out by AI, and only companies that actually adapt their products, architectures, and strategies will survive.
AI does not function as an independent tool, but as a structural part of modern software platforms, Zaveri explained to Bloomberg Television.
In recent years, the company has deeply integrated AI into its platform, leading to significant growth in AI-related revenue. According to Zavery, this development highlights that AI primarily creates value when integrated into existing business processes and workflows. Software vendors who continue to position AI as a separate feature or experiment are missing the point of transformation. What matters to customers is not access to models, but reliable, manageable, and scalable solutions.
This change places new demands on software companies. Providing AI capabilities is no longer enough, especially for enterprise customers. Without built-in security, compliance, auditing, and controls, there is insufficient confidence to deploy AI at scale. According to Zaveri, this is exactly where the difference between suppliers that stick around and those that fade is in the future. AI requires governance and visibility, not just computing power and smart algorithms.
clear recalibration
This development fits into a broader pattern that the sector has seen to date during the transition to the web and later to cloud computing. At the time, software companies weren’t disappearing all together, but there was a clear restructuring going on. Suppliers that did not adapt their technology in time lost relevance, while others embraced the new paradigm and grew. AI now poses similar challenges for software companies’ adaptability.
According to Zaveri, this will inevitably increase market selectivity. Not because AI will automate everything, but because differences between software suppliers will become more pronounced. Companies that actually use AI to help their customers transform will experience AI as an accelerator. AI will increase pressure on stakeholders who remain stuck with individual tools and limited implementation. Integration is not a goal in itself, but a logical outcome of diverse strategic choices.
AI is also changing the role of software internally. The focus is shifting from traditional IT solutions to broader support for employees and customers. AI is being used across IT, HR, finance, and customer service to improve interactions, better understand intent, and resolve issues faster. As a result, AI is moving from an innovation project to a core component of daily business operations.
An important prerequisite for this is security. As AI becomes more intertwined with processes and data, security becomes more important. The strong growth in AI-related security activity shows that trust and control are essential for sustained adoption. Software companies that do not have this structured into their products will have difficulty serving large organizations.
The message to the sector is therefore clear. AI will not replace software companies, but it will force them to make fundamental choices. Only suppliers that fully integrate AI into their platforms with management, compliance, and scalability in mind will remain relevant. For the rest, the same outcome as previous technological revolutions looms. Not because the field will disappear, but because standing still is no longer an option.
