Investor sentiment on artificial intelligence is becoming increasingly divided, according to Kepler Cheuvreux, in a recent wide-ranging research note.
The bank asked: “Is AI truly a boon for the entire IT industry, or could it also be a curse?”
Kepler Cheuvreux said the rise of AI has triggered “record-breaking infrastructure investments, funding rounds, and re-prioritisation of R&D investments across the IT value chain.”
Yet, the financial payoff is still uncertain as “the market continues to search for compelling evidence that AI can be effectively monetised.”
The firm pointed to weak share price performance in software names such as Accenture, Adobe and Salesforce.com, contrasting with the gains of perceived AI winners.
The analysts argued that “AI is more revolutionary than the cloud transition, requiring swift and decisive action from all players,” while dismissing dystopian fears about the end of traditional software models.
They interpreted Microsoft CEO Satya Nadella’s claim that “SaaS is dead” as “a wake-up call to all players that it will be essential for every business model to adopt to the AI world fast and deliver a clear value-add to clients.”
Kepler Cheuvreux noted that software vendors face the greatest urgency, while IT services firms will be pressured by “AI-driven efficiency” that could squeeze project pricing.
Resellers, meanwhile, are expected to see “limited direct impact from AI” but may benefit from “an emerging AI-focused vertical (e.g. Microsoft’s Copilot upselling).”
Ultimately, Kepler Cheuvreux said AI “reinforces the need for ongoing digitalisation,” adding that the technology will both challenge and transform the IT industry, with different outcomes depending on how quickly companies adapt.
