AI upheaval forces software industry to ask if this is an ‘adapt or die’ moment
Financial Times
February 24, 2026
AI-Generated Deep Dive Summary
The software industry is at a critical juncture as artificial intelligence (AI) disrupts traditional business models, forcing companies to question whether they must "adapt or die" in the face of rapid technological change. The rise of AI-powered tools and agents is reshaping how businesses operate, from customer service to software development, leaving established players to grapple with whether they can evolve quickly enough to remain relevant. This upheaval has sparked a broader discussion among market participants about whether incumbents will embrace disruption or risk being sidelined by innovative new technologies.
The financial stakes are high, as AI agents demonstrate their ability to perform tasks more efficiently and cost-effectively than traditional methods. For instance, AI-driven customer service platforms can resolve issues faster and with higher accuracy, potentially rendering human-led operations obsolete. Similarly, AI tools are transforming software development by automating coding, testing, and debugging processes, which could redefine the role of developers and the way applications are built. These advancements highlight the growing pressure on companies to integrate AI into their operations or risk falling behind competitors.
While AI offers significant opportunities for innovation, it also poses challenges that businesses must navigate carefully. One major concern is the potential for bias in AI systems, which could lead to ethical dilemmas and reputational damage if not addressed. Additionally, the rapid pace of technological change means companies must continuously update their strategies and skills to stay competitive. This requires significant investment in retraining employees, adopting new tools, and fostering a culture of innovation.
The implications of these shifts extend beyond individual companies to the broader economy. As AI agents become more sophisticated, there is growing uncertainty about how
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Originally published on Financial Times on 2/24/2026