Enterprises Are Spending 15% More on Software in 2026, Thanks to AI. Here's How to Profit.
2026-03-01 07:35:00 ET
Software stocks have had a tough start to the year as investors worry that artificial intelligence (AI) could reshape the industry. New AI agents can complete tasks on their own and write code, lowering the barriers to building software and potentially increasing competition for incumbents. Still, companies with deep customer relationships are more likely to use AI to strengthen their platforms and increase their value to investors.
Enterprise spending on software is expected to keep growing. A recent Gartner report projects enterprise software spending will increase by at least 15% to $1.4 trillion this year. Microsoft (NASDAQ: MSFT) and ServiceNow (NYSE: NOW) have both sold off this year, yet their latest earnings reports show solid momentum in their respective businesses.
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