AI Shakes the Software Industry: Sam Altman Warns of Major Disruption
Rapid advances in artificial intelligence are poised to reshape the technology landscape. OpenAI CEO Sam Altman acknowledged at the India AI Impact Summit 2026 in New Delhi that AI could be “quite bad” for some software companies. As coding becomes easier and faster than ever, traditional software business models are facing unprecedented pressure.
Software Creation Is Becoming Easier
Altman stated that building software is now significantly more accessible than in the past, which may pose serious challenges for certain firms. However, he emphasized that companies offering differentiated value beyond pure code production could benefit from this transformation.
His remarks followed the launch of OpenAI’s Frontier enterprise platform, alongside the introduction of Claude Cowork by Anthropic. Together, these developments have intensified concerns among investors about the future of traditional software companies.
Frontier Ushers in Enterprise AI Agents
Introduced on February 5, Frontier is positioned as an “intelligence layer” for large organizations. It enables enterprises to build and manage AI agents capable of performing complex, multi-step tasks across corporate systems. The platform integrates with data warehouses, CRM tools, and internal applications, allowing agents to operate with shared business context.
Early adopters include HP, Intuit, Oracle, State Farm, Thermo Fisher Scientific, and Uber, with pilot programs underway at BBVA, Cisco, and T-Mobile.
OpenAI CFO Sarah Friar noted that enterprise customers account for roughly 40 percent of the company’s revenue, with ambitions to increase that share to 50 percent. Frontier also supports AI agents developed by third parties, including Google, Microsoft, and Anthropic.
Software Stocks Under Pressure
The rise of autonomous AI agents has triggered a sharp selloff in software stocks. Investors fear that AI-driven automation could erode traditional revenue streams.
Since the launch of Claude Cowork on January 12, major software firms have seen significant declines. Salesforce shares are down roughly 30 percent year-to-date, while Adobe has fallen 27 percent. Even Microsoft, despite its AI leadership, has experienced notable market value losses amid concerns over infrastructure spending returns.
From SaaS to “Service as Software”
Analysts describe the shift as a move from “Software as a Service” to “Service as Software.” AI agents can now independently navigate interfaces and execute complex workflows, weakening the traditional link between workforce size and software spending.
Altman concluded with a bold prediction: if current progress continues, early forms of true superintelligence could emerge within just a few years. By the end of 2028, he suggested, a larger share of the world’s intellectual capacity may reside inside data centers than outside them.
