Generative AI’s (gen AI’s) quick adoption over the past year suggests that the global software sector will undergo a major change, senior partner Jeremy Schneider and coauthors note. But based on a McKinsey survey of software leaders and executives, it is anticipated that gen AI will affect each software category to a different degree. Content creation is one of three areas expected to see a very high level of disruption, while system infrastructure is on the other end of the disruption spectrum. Overall, gen AI could spark almost $300 billion in new software spending over the next few years.
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A Voronoi diagram shows the market size of different software industry segments within the software marketplace, in billions of dollars. The segments are color-coded by level of disruption/reimagination. Content creation, customer service, and information services/data integration show a very high level of disruption. Data and AI development, analytics/visualization, collaboration/communication, and enterprise automation show a high level of disruption. Cybersecurity, application development, and customer relationship management show a medium-high level of disruption. System infrastructure shows a medium level of disruption.
Source: IDC; McKinsey analysis.
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To read the article, see “Navigating the generative AI disruption in software,” June 5, 2024.