00:00 Speaker A
Fear of AI destruction. Of course, we know that we have been front and center in the software sector.
00:09 Speaker A
You know, as a guy who kind of lives and breathes this Rishi, I’m like, what do you think, what do you think are the big misconceptions that investors might have about that trend and that dynamic, Rishi?
00:23 Speaker B
Oh, really Johnson, it’s always a pleasure to be here. Thank you so much for having me. I think there are two big misconceptions.
00:29 Speaker B
The first is to think about AI and software and think independently. In fact, they are becoming more and more intertwined. After all, what is Claude Code and Open AI Code Action Cursor? These are software, right? This is a very new form of software and its agents and multi-tick systems. And importantly, as we’ve been talking to CIOs and industry players, the intertwining of software and AI is very clear.
00:55 Speaker B
The second thing is the thought process of AI replacing the software we use, like Salesforce, workday, and even Microsoft products. Just build your own version of it using cloud code or open AI code. And, you know, you’re going to see some headlines about that. Last week, I saw a headline about Starbucks using AI to replace some systems from IBM and Microsoft.
01:17 Speaker B
But at the end of the day, if you do the math, these companies are going to spend their best AI talent. You’ll actually end up spending more money, especially if you think about it from a TCO perspective for a poor quality product. And I think as that awareness sets in, we may start to feel at least less dire about a lot of these software names, especially in the application space.
