UBS: HumanX 2026 — The AI Impact on Software
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Following the HumanX AI conference in San Francisco, UBS reports a significant surge in agentic AI investments, moving beyond core use cases like Microsoft Copilot and AI coding tools. Customer feedback supports a more cautious stance on SaaS and application software companies. Anthropic and OpenAI are aggressively capturing enterprise budgets, securing initial contracts exceeding $100 million and effectively becoming the best application software companies.
Notably, enterprises clearly prefer building custom AI solutions in-house rather than purchasing third-party software, especially for workflow-oriented applications. One client summarized the shift: "We are definitely cutting third-party software investments; the pendulum is swinging back to build." This trend pressures traditional SaaS vendors, though systems of record remain more resilient than auxiliary point solutions. Consequently, enterprise data platforms like Palantir, Databricks, and Snowflake stand to benefit as proprietary data emerges as the true AI differentiator.
Microsoft is perceived as lagging in AI, with disappointing Copilot feedback, though its enterprise trust advantages remain formidable. Salesforce faces notable churn risk, with some clients planning to replace Tableau and CRM seats by building in-house alternatives. UBS concludes that SaaS companies face growth risks as they transition toward outcome-based pricing.