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Over 100 Public Software Companies Getting 'Squeezed' by AI, Study Finds

Monday April 21, 2025. 04:43 PM , from Slashdot
Over 100 Public Software Companies Getting 'Squeezed' by AI, Study Finds
Over 100 mid-market software companies are caught in a dangerous 'squeeze' between AI-native startups and tech giants, according to a new AlixPartners study released Monday. The consulting firm warns many face 'threats to their survival over the next 24 months' as generative AI fundamentally reshapes enterprise software.

The squeeze reflects a dramatic shift: AI agents are evolving from mere assistants to becoming applications themselves, potentially rendering traditional SaaS architecture obsolete. High-growth companies in this sector plummeted from 57% in 2023 to 39% in 2024, with further decline expected. Customer stickiness is also deteriorating, with median net dollar retention falling from 120% in 2021 to 108% in Q3 2024.

Read more of this story at Slashdot.
Read more at Slashdot
https://tech.slashdot.org/story/25/04/21/1443240/over-100-public-software-companies-getting-squeezed...

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