Mistral AI CEO Predicts Major Shift from Traditional Software to AI Platforms

NEW DELHI — Arthur Mensch, CEO of French AI firm Mistral AI, stated that artificial intelligence is positioned to take over more than half of the enterprise software currently purchased by businesses. His remarks, made during an interview with CNBC, highlight a growing investor anxiety about the future of traditional software companies.

The concern is that AI's capacity to rapidly build custom applications threatens the established software-as-a-service (SaaS) sector. This sentiment has contributed to a difficult year for software stocks, with major ETFs and key Indian IT firms seeing significant declines.

"AI allows us to develop software at the speed of light," Mensch said at the AI Impact Summit. He explained that with proper infrastructure, companies can link their data to AI systems and create tailored applications in days—a process that once required specialized vertical software. This shift, which he calls "replatforming," is already underway, with over a hundred enterprise clients exploring how to replace legacy systems with more efficient and cost-effective AI solutions.

However, Mensch drew a distinction. Core "systems of record" software, which manages foundational organizational data, will remain essential and work alongside AI. This view was echoed by Rubrik CEO Bipul Sinha, who noted that while workflow software faces disruption, data infrastructure enabling AI will see increased demand.

Separately, Mensch outlined Mistral's expansion into India, with plans to open a local office this year. To meet Indian data sovereignty requirements and serve its multilingual market, the company will partner with local infrastructure providers rather than building its own data centers, as it does in Europe. This strategy aims to capture a share of one of the world's most competitive tech markets.

Source: CNBC