Summary: AI software revolution reshaping business operations, benefiting companies like Microsoft, Salesforce, and Palo Alto Networks.

From Investing.com: 2024-09-21 04:00:00

The AI software revolution is reshaping business operations, with companies embracing AI technologies to boost productivity and cybersecurity. Some firms are directly capturing AI workloads, while others leverage AI to enhance their products. Microsoft, MongoDB, and Snowflake are expected to benefit from the AI trend, with Snowflake positioned as a long-term winner.

In the application software sector, Salesforce and Smartsheet are poised to thrive as AI-driven solutions gain popularity. Meanwhile, companies like Palo Alto Networks, CrowdStrike, and Datadog are using AI to enhance cybersecurity offerings. Palo Alto Networks has seen significant revenue growth from AI products, reflecting the rising demand for AI-augmented security tools.

Despite market challenges, the timeline for realizing significant AI value has extended, with many now aiming for AI-driven applications to gain traction by 2025 instead of 2024. While generative AI is a hot topic, it’s projected to represent less than 10% of the overall $900 billion AI market by 2027. This indicates that other areas like data management and cybersecurity offer greater long-term opportunities.

A major challenge highlighted in the report is the shortage of skilled talent to implement AI projects effectively. Regulatory scrutiny on AI governance and compliance also poses hurdles for widespread adoption in the enterprise space. Despite these obstacles, over 70% of businesses plan to allocate 5% or more of their 2024 software budgets to AI initiatives, emphasizing the continued commitment to AI investment.



Read more at Investing.com: How to play the AI Enterprise Software revolution By Investing.com