The software industry in February 2026 stands at a crossroads of explosive AI growth and market turbulence. According to Gartner’s latest forecast released on February 3, 2026, worldwide IT spending is projected to reach $6.15 trillion in 2026, marking a robust 10.8% increase from 2025’s estimated $5.56 trillion. This milestone underscores the sector’s resilience amid economic uncertainties, with software emerging as a key driver.
Gartner highlights software spending climbing to $1.43 trillion in 2026, up 14.7% year-over-year, fueled by embedded generative AI (GenAI) features and enterprise demand for intelligent applications. Projections for GenAI model spending remain strong at around 80.8% growth, with GenAI’s share of the software market rising by 1.8%. This aligns with broader AI spending forecasts, where Gartner estimates worldwide AI outlays hitting $2.52 trillion in 2026—a 44% surge—primarily in infrastructure but increasingly spilling into software layers.
These figures reflect a “intelligence supercycle” where AI reshapes IT buying, prioritizing scalability, reliability, and operational impact over experimentation. For deeper insights into long-term tech investment trends, see our related post on vfuturemedia.com: Tech Investments in the AI Era – Strategies for 2026 and Beyond.
Stock Sell-Offs: AI Disruption Fears Grip SaaS
Recent weeks have seen significant pressure on software stocks, particularly in the SaaS space. Major players like SAP, ServiceNow, Salesforce, and Workday experienced sharp declines following earnings reports and broader sector sentiment. SAP’s cloud outlook for 2026 disappointed analysts, triggering a 15-16% drop, while ServiceNow fell despite beating estimates, amid concerns over decelerating growth.
The core fear: AI tools enabling rapid, low-cost code generation and in-house app development could erode traditional SaaS value propositions. Advances from providers like Anthropic (with tools such as Claude Cowork) raise worries that enterprises might reduce reliance on subscription-based platforms, opting for custom AI-driven solutions. Investors are pricing in a “worst-case scenario” where AI disrupts legacy models, leading to seat reductions and margin compression.
Yet, this sell-off may represent overreaction. Established SaaS firms are aggressively integrating agentic AI—autonomous agents that orchestrate workflows—potentially extending their moats. Deloitte’s 2026 predictions suggest up to 75% of companies investing in agentic AI, driving SaaS platform spending. Adoption remains gradual, but incumbents with vast data and ecosystems hold advantages over pure AI startups.
Key Launches: OpenAI’s Codex App and ISE 2026 Innovations
February 2026 has delivered notable product momentum. OpenAI launched its Codex app (desktop-focused, with enhanced user accessibility), positioning it as a command center for agentic coding. The app manages multiple AI agents in parallel across projects, leveraging cloud environments and worktrees for complex tasks. This builds on Codex’s legacy (powering tools like GitHub Copilot) and aims to capture share in the competitive AI coding market against rivals.
At Integrated Systems Europe (ISE) 2026 (February 3-6, Barcelona), vendors unveiled AI-integrated software solutions for AV and enterprise environments. LG Electronics highlighted B2B platforms combining displays with AI-driven software for hotels, control rooms, and retail. MAXHUB introduced collaboration tools like the XBar Series and partnerships (e.g., with Microsoft for Co-Create). Intel showcased edge AI for smart spaces in corporate, retail, and hospitality settings. These launches emphasize “solutions beyond displays,” blending hardware with intelligent software to enable connected, AI-powered experiences.
Such innovations signal software’s evolution from standalone tools to integrated ecosystems powering real-time operations and personalization.
Opportunities for Startups in the AI-Driven Landscape
Despite incumbent dominance, startups thrive in niches where agility meets unmet needs. Agentic AI, autonomous agents handling multi-step tasks, opens doors for specialized platforms in verticals like compliance, personalization, and workflow automation. The global agentic AI market could reach $8.5-35 billion by 2030, with upside from better orchestration.
Startups benefit from lower barriers to entry via AI code generation, enabling faster prototyping and iteration. Focus areas include:
- AI-native enterprise tools challenging legacy SaaS in specific domains.
- Security solutions for AI agents in SaaS environments, addressing new risks like entitlement sprawl.
- Edge AI applications for real-time decision-making.
Funding flows toward scalable, ROI-focused AI, with infrastructure-heavy spending creating adjacent opportunities in optimization and integration tools.
For more on navigating these shifts, explore vfuturemedia.com: Startup Strategies for AI Disruption in Software.
Future Predictions: Sustained AI Momentum Amid Caution
Looking ahead, Gartner and industry analysts foresee software growth outpacing overall IT, driven by GenAI embedding across applications. By 2027, AI could represent half of IT spending if trends hold. Challenges persist—supply constraints, ethical governance, and ROI scrutiny—but the transition favors adaptable players.
The sector’s 2026 trajectory: resilient expansion, with AI as both disruptor and accelerator. Incumbents modernizing via AI integration will likely rebound, while agile startups capture emerging value.
Actionable Tips for Software Businesses Adapting to AI
To thrive:
- Embed AI deeply: Integrate GenAI and agentic capabilities into core products for differentiation—focus on reliability and measurable ROI.
- Prioritize data and ecosystems: Leverage proprietary data to build moats against commoditization.
- Monitor agentic trends: Invest in autonomous agents for workflow orchestration; pilot in high-value areas like customer service or dev ops.
- Enhance security posture: Address AI-specific risks in SaaS, including agent entitlements and misconfigurations.
- Pursue hybrid models: Combine SaaS with AI customization services to retain customers amid in-house fears.
- Track spending shifts: Align offerings with Gartner’s priorities—software, data centers, and AI infrastructure.
By acting decisively, software businesses can turn AI from threat to tailwind.
In summary, February 2026’s software outlook blends record IT spending forecasts with AI-fueled optimism and near-term volatility. The path forward demands innovation, resilience, and strategic adaptation.
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