1 month ago
AI Strengthens, Not Replaces, Enterprise Software Firms
Goldman Sachs said that AI will make enterprise software companies stronger, not replace them.
AI needs big data and the systems that keep it organized, so those software companies stay important.
The report says the best advantage comes from the extra rules and workflows built on top of the data.
Companies that already use AI are working with big AI firms while keeping their old software.
This means more cloud use and better data sharing across a company.
Goldman Sachs report says AI will strengthen, not replace, enterprise software firms.
Systems of record are essential because AI relies on them for training, grounding, permissioning, and contextual execution.
AI adoption drives demand for integrated, well‑governed data, encouraging migration to cloud and data‑platform architectures.
The real competitive edge lies in the contextual layer built on enterprise data—workflows, metadata, permissioning, auditability, embedded business logic, and cross‑silo reconciliation.
Industry‑specific software and large enterprises are partnering with LLM providers and integrators while keeping existing platforms.
- Who
- Enterprise software companies and Goldman Sachs research team
- What
- AI will strengthen enterprise software firms rather than replace them
- Where
- New Delhi, India
- When
- July 30, 2024
- Why
- AI relies on systems of record for training, grounding, permissioning, and contextual execution
Key facts
- Report Source
- Goldman Sachs
- Date
- July 30, 2024
- Key Insight
- AI strengthens enterprise software
- Data Need
- Integrated, well‑governed data
- Competitive Advantage
- Contextual layer on enterprise data
Quotes
Goldman Sachs
Representative from Goldman Sachs research
“In our view, the contextual layer built on top is a defensible moat in the AI era that contains the processes, workflows, metadata, permissioning, auditability, embedded business logic and cross-silo reconciliation.”
livemint.com
“Systems of action, the applications that execute tasks and drive workflows, depend on systems of record for training, grounding, permissioning, and contextual execution.”
livemint.com
Sources
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