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Message   VRSS    All   Over 100 Public Software Companies Getting 'Squeezed' by AI, Stu   April 21, 2025
 10:00 AM   

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

Link: https://tech.slashdot.org/story/25/04/21/1443...

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.

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