Goldman Sachs Warns AI Disruption Will Pressure Software Stocks for Years

Goldman Sachs strategist Ben Snider warns that fears around artificial intelligence disrupting traditional software business models could weigh on the sector for years.

The concern centers on “seat compression,” where AI tools replace multiple human users, directly threatening the subscription-based revenue models that many SaaS companies rely on. As a result. Major software stocks have seen steep declines in 2026, with investors increasingly questioning long-term growth assumptions.

The report highlights that resolving this uncertainty will require clear evidence that AI enhances rather than replaces existing business models. Until then, broad exposure to software stocks may remain risky, with analysts recommending a more selective investment approach. While AI is expected to generate significant new revenue streams, the transition could reshape the competitive landscape. Creating winners and losers as the industry adapts to rapid technological change.

Clever Robot News Desk 14^th April 2025