Prof G Markets Did Anthropic Just Kill Software?
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Feb 9, 2026 They unpack last week’s software sell-off and debate whether AI will replace enterprise software. They discuss specific software names to buy and which incumbents are most vulnerable. They cover a Capitol Hill hearing about streaming consolidation and Disney’s new CEO and possible divestitures. They analyze Anthropic’s Super Bowl ad and why it could change the company’s trajectory.
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Software Sell-Off Is Panic, Not Death
- The market's sell-off priced software as if AI had killed the industry, but Scott Galloway and Ed Elson argue this is panic, not reality.
- Large enterprise SaaS firms face margin pressure, yet switching costs and integration of AI into incumbents protect revenues for now.
AI Spurs Low-Cost Rivals, Not Instant Replacement
- AI will spawn many low-cost startups offering cheaper versions of incumbent software, pressuring margins but not necessarily causing immediate replacement.
- Incumbents with entrenched user familiarity and enterprise security will retain customers unless a superior, mandated alternative appears.
Account For Enterprise Switching Friction
- Don't assume enterprises will rapidly switch providers; account for long procurement cycles and high switching costs when valuing SaaS disruption risk.
- Weight trust, security, and integration in enterprise retention analyses.