"Investors need to take to the couch. That's my conclusion after watching the market gyrations of the past week. In particular, investors would be wise to find themselves a Kleinian psychoanalyst. That's because they seem stuck in what a Kleinian would likely identify as "the paranoid-schizoid position"-swinging wildly between viewing the impact of AI on established software vendors as either "all good" or "all bad.""
"The enterprise AI race right now is more like a Russian novel.At various times over the past two years, the financial markets have punished the shares of SaaS companies because it appeared that AI foundation models might allow businesses to "vibe code" bespoke software that would mean these customers wouldn't need Salesforce or Workday or ServiceNow."
Investors swung between extreme optimism and pessimism about AI's impact on enterprise software, causing volatile market movements and significant valuation losses. Markets recently erased roughly $2 trillion in value before the S&P 500 rebounded, while many SaaS vendors saw only modest recoveries and at least one CEO change at Workday. The enterprise AI transition is complex, with foundation models potentially enabling bespoke "vibe code" that could reduce demand for established vendors. New models from major labs raise cybersecurity and safety questions. Policymakers are considering voluntary data-center construction limits to limit consumer power-bill impacts, and common AI metrics may be misleading.
Read at Fortune
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