Name: AI is challenging software incumbents
Uploaded: 2026-01-14T18:27:33.323Z
Duration: 1 min 34 s
Description: CNBC’s Seema Mody looks at the sharp selloff in software names like Salesforce and Adobe as competing products hit the market, raising concerns around competition.

CNBC’s Seema Mody looks at the sharp selloff in software names like Salesforce and Adobe as competing products hit the market, raising concerns around competition.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

The software sector has come under pressure as new AI technologies challenge established companies. Recent announcements from Anthropix Cloud and Apple have introduced AI-powered products that compete directly with offerings from firms like Salesforce and Adobe, contributing to notable declines in their stock prices.

Analysts identify additional companies, including Asana, HubSpot, and Elastic, as vulnerable to AI-driven disruption. Industry observers are monitoring upcoming earnings, CEO strategies, potential mergers and acquisitions, and the scale of OpenAI's next fundraising round as indicators of how the sector may adapt to ongoing AI advancements.

AI is challenging software incumbents

Tech stocks are leading to the downside today with software under pressure as concerns grow that AI is displacing a number of those names Our Seema Modi has much more in this Seema. Well Frank in the last 48 hours There's been two major announcements that have really rocked software stocks first Anthropix cloud unveiling an AI agent that can basically automate basic tasks similar to what Salesforce's agents are trying to accomplish and then yesterday Apple launching a studio of design apps that are a lot cheaper than Adobe's existing line of products These two announcements Frank are amplifying concerns around competition that have already pressured shares of Adobe which have fallen about 26% in the last year and then there's Salesforce now down 10% in 2026 on track for its worst start to the year since 2022 other names that are seen as vulnerable to AI when we have conversations with analysts Asana HubSpot Elastic which focuses on robotic automation and as more tech heavyweights launched these AI agents the call center names like five nine and nice Have been front and center a couple of catalysts now to watch in addition to earnings Well CEOs will have to defend their products and show that AI is not displacing their business further signs of M&A in consolidation following a string of acquisitions by Palo Alto Networks and IBM that's something to continue to look for and Open AI's next fundraising round analysts say if it's bigger than expected That would suggest it's got the capital to continue to work on apps and products that take aim at the business Customer which is so crucial to software's bottom line Frank Arsena Modi live at the CNBC headquarters SEMA. Thank you very much

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Sikhio District

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Tehran

Iran warns neighbors it could hit U.S. bases if Washington strikes

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Ottawa

Trump says he doesn’t need Canadian goods or the CUSMA

United States President Donald Trump says he has cancelled all meetings with Iranian officials and has told protesters to “take over your institutions” amid Tehran’s crackdown.

Trump cancels Iran meetings, urges protesters to take on institutions

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Iran official says 2,000 killed in nationwide unrest

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Vero

Ex-Corsican nationalist leader Alain Orsoni killed at mother's funeral

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London

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Iranian leaders mobilise supporters as U.S. weighs intervention

Last week an Immigration and Customs Enforcement Agent shot and killed Renee Good, a Minneapolis mother who was observing a law enforcement action carried out by the agency.

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Britain will bring into effect a law criminalizing the creation of non-consensual intimate images this week, technology minister Liz Kendall told parliament after regulator Ofcom launched an investigation into Elon Musk's X.

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Iran's internet was cut off late last Thursday, apparently in an attempt by government authorities to prevent protesters from organizing and uploading videos for the outside world to see.

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New Delhi

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Los Angeles

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Minneapolis

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Trump weighs military option in Iran amid rising death toll

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Demonstrations in Iran are now entering their third week and the death toll is surging with hundreds killed, according to a human rights group. Ayatollah Ali Khamenei insisted that the Islamic regime will "not back down" in the face of the growing social unrest and calls for regime change.

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Las Vegas

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Victoria

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AI is challenging software incumbents

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Rise of AI