David Gurra

Like, we all know that a lot of the AI hype was a bit premature in terms of how mature these tools were actually and how ready they were to be used in the enterprise.

And it's really holding toes to the fire that, hey, it's time to make sure your customers are actually using your AI tools or else the market's going to sell your stock and act like you all are going to go poof in a couple of years.

Bloomberg's Brodie Ford, always a perfect way with words.

We thank you.

Let's get more on the wider AI impact on tech and software with ClearBridge Investment Senior Research Analyst for software, for IT services, Hilary Frisch.

Hilary, the perfect person.

I go back to, in many ways, what Brodie was just saying.

We're questioning just how good the tools are.

Have we seen a sudden shift in how brilliant these AI agents are in the last few months?

Because at the moment, it's very hard for a CEO, for Arvind Krishna over at IBM, for whether it's ServiceNow, Bill McDermott, to disprove that they're not going to be impacted.

That's right.

So how do they prove a negative?

On the Bloomberg terminal, there are, let's say, a dozen reports of single name stocks that are moving because of the association with Anthropic, who held an event this morning.

You study the software sector, right, very closely.

Is there any evidence those names are moving because people genuinely believe there's a fundamental change to how they do business?

Or is it just simply name association at this point?

Hilary, there was a research report, a bearish research report from a little-known outfit called Citrini that basically outlined various risks to different sectors from AI.

One of the co-authors joined Bloomberg Television.

I just want to play you some of that conversation.

You know, in that he's kind of saying, well, this is kind of the function of the market of the last three years, but still poses the central question, which is, is AI rendering existing software obsolete or is it making it better?