Does AI pose an existential risk to the software industry?
Investors have been grappling with that question,
leading to profound sell-offs in software stocks this year.
But are their concerns actually merited?
And how can investors sort out the winners from the losers?
I'm Allison Nathan, and this is Goldman Sachs Exchanges.
Today I'm joined by Gabriela Borges, who covers the software sector with Goldman Sachs Research.
We recently featured Gabriella in our latest Top of My Report, which explored these very questions.
Gabrielle, welcome to Exchanges.
It's a pleasure.
Thank you for having me.
I think this is the first time, so I'm excited to have this conversation,
and it's been a very tumultuous time for the software industry, so great to have you.
So Gabrielle,
let's just set the stage generative AI has been around for several years now but the market narrative around AI seems to have really shifted from one of enthusiasm to one of concern and concern in particular in recent months about AI Disruption risk with the focus really on your sector on the software sector.
So walk us through why that is and What made investors rethink the prospects for software companies?
Yeah, absolutely.
It's been a really interesting three months.
And if I were to pick out a couple of the milestones that really had investors level up the amount of attention that they were paying to software in particular,
and enterprise software even within that,