Reasoning
While AI integration into existing enterprise software suites (CRM, ITSM, etc.) is expected to drive efficiency and potentially lead to some budget reallocation, overall enterprise digital transformation initiatives and the continued need for robust data management and analytics are likely to sustain demand. Historical SaaS growth rates, though moderating from peak pandemic levels, have remained strong, suggesting inertia against a sharp slowdown solely due to AI reallocation by 2026.Key uncertainty
The pace and effectiveness of AI-driven productivity gains within existing software could be faster than anticipated, leading to a more significant budget shift away from traditional software expansion towards AI-specific investments or internal development.