Artificial intelligence is becoming a decisive force in the software space, and investors are increasingly focused on which platforms can translate AI adoption into sustainable growth and profitability. From cloud infrastructure to databases to customer-facing applications, scale and execution are emerging as key differentiators.
BNN Bloomberg spoke with Rishi Jallia, managing director of software at RBC Capital Markets, about how AI is reshaping the competitive dynamics across software and why select companies stand to benefit as spending accelerates.
Important points
- Artificial intelligence is increasingly seen as a multi-year growth driver, and major software platforms are positioned to deliver meaningful returns over the long term.
- As customers prioritize AI solutions across cloud infrastructure, data, and applications, large integrated ecosystems are gaining ground.
- The rise of AI applications is accelerating the demand for databases designed to handle unstructured and non-relational data.
- As competition increases across cloud, database, and application software, consistent execution and profitability become more important.
- AI-driven innovations in CRM and marketing automation have the potential to reshape competitive dynamics as vendors expand beyond their traditional customer base.
Read the full story below.
Roger: Now, it's time for hot picks. Our next guest focuses on software, and one of the pioneers in this field is his first choice. Learn more from Rishi Jaluria, Managing Director of Software at RBC Capital Markets. Thank you so much for joining us, Rishi.
Rishi: Thank you so much for having me.
Roger: Okay, you're going to do it the old fashioned way with Microsoft. Can we call it old school now?
Rishi: Microsoft is one of those really interesting companies that has proven that they can reinvent themselves over and over again. Whether you look at the momentum behind Office 365, Azure, or the broader cloud suite, the company is clearly a software pioneer and has successfully transitioned to the cloud.
Now it's being done again using AI. Microsoft first invested in OpenAI very early on in 2019 and is now taking an AI-first approach by deploying AI across the stack.
What impresses me most is that there are many ways Microsoft can benefit from AI. It's not just raw computing power for model training. The data tier uses products like Fabric and Cosmos DB, the developer tier uses GitHub Copilot, and the application tier uses tools like Office Copilot and Security Copilot. Even areas like LinkedIn and gaming that investors may overlook today could become big beneficiaries of AI over time.
Roger: So Microsoft, despite its large size, still seems capable of adapting and leading?
Rishi: I think that's correct. A lot of that is due to the leadership of Satya Nadella, who has been very forward-thinking during his tenure as CEO of Microsoft.
Roger: What did he do that impressed you the most?
Rishi: The biggest thing I've seen is his focus on doubling down on innovation. The bigger a company is, the harder it is to innovate, but he created a culture of innovation and a more open ecosystem, a kinder, gentler Microsoft than it was under Steve Ballmer.
Microsoft is now willing to work with and integrate directly with competitors. Anything that drives customer success also drives innovation and, ultimately, company success. This culture has supported Microsoft's success.
Roger: Now, next is MongoDB.
Rishi: MongoDB may not be a household name, but it's the next generation database vendor. It competes with companies like Oracle, which focus on structured data, or data that fits neatly into rows and columns.
MongoDB focuses on unstructured data, which is a fundamentally different problem. What excites me most are the opportunities around creating new AI applications, especially those that leverage unstructured data. MongoDB has the right technology and can be the developer platform of choice for these applications.
We're already seeing AI native companies like Cursor and Relevance AI using MongoDB. As these companies grow in scale and become more important, they create meaningful tailwinds for MongoDB.
Roger: What is your favorite technology they are implementing?
Rishi: There are several key areas. The first is the ability to work with unstructured data. This is very different from working with structured data using Oracle or the open source PostgreSQL.
The second is the integration of adjacent technologies. MongoDB introduces search and vector database capabilities to MongoDB Atlas. We also leverage AI to make it easier to move relational workloads to non-relational databases.
By integrating these features into the core platform, MongoDB can capture a larger share of workloads and wallets. As AI applications continue to develop and scale, their positioning becomes a real tailwind for businesses.
Roger: Well, last but not least is HubSpot. What do you like there?
Rishi: HubSpot is a truly fascinating company. I often think of it as the anti-Salesforce. Although we operate in similar areas such as sales, service, marketing, commerce, and operations, HubSpot was built organically from the ground up.
All of Salesforce's modules are built on a single platform, rather than stitched together through acquisitions. This is what we've seen at Salesforce. HubSpot invests heavily in innovation and customer success.
We believe there are two main ways HubSpot can benefit from AI. First, it has one of the most advanced AI roadmaps in front office application software. This is being driven by co-founder and chief technology officer Dharmesh Shah, one of the most hands-on AI executives among public company executives.
Next, HubSpot can use AI to accelerate product development and close the gap with Salesforce. Salesforce has traditionally dominated large enterprises, while HubSpot has focused on the mid-market. Over time, that can change. If HubSpot builds the governance, security, and customization capabilities that businesses need, I wouldn't be surprised if it wins a Global 2000 deal against Salesforce within the next five years.
Roger: You have to leave it there. Rishi, thank you very much for joining us. We hope to see you in the new year.
Rishi: Thank you very much.
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This BNN Bloomberg summary and transcript of the December 30, 2025 interview. Rishijallia Published with the help of AI. The original survey, interview questions, and added context were created by BNN Bloomberg journalists. Editors also reviewed this material prior to publication to ensure its accuracy and compliance with BNN Bloomberg's editorial policies and standards.
