Arthur Mensch foresees a significant shift occurring, where custom AI applications are poised to take the place of conventional SaaS offerings.
AI has the potential to eventually supersede over half of the software presently acquired by businesses, Mistral AI CEO Arthur Mensch stated in an interview with CNBC. This assertion emerges as software equities face scrutiny amid apprehensions that AI could disrupt established SaaS operational frameworks.
Mensch indicated that a substantial transformation is currently unfolding, as businesses are progressively opting to develop proprietary AI applications rather than acquiring standard SaaS solutions. He projected that over half of current SaaS expenditures might transition towards AI-driven solutions.
Mensch highlighted that their customers are observing the capability to swiftly develop bespoke applications—such as for purchasing or supply chain processes—within days. This contrasts with five years ago, when such tasks would have necessitated a specialized vertical SaaS solution. He views this platform evolution as a significant advantage, noting that over 100 corporate clients are approaching them, keen on revamping and updating their IT infrastructures, particularly by replacing older, costly legacy systems.
Nevertheless, Mensch maintains that foundational business systems, responsible for data storage and organization, will persist and serve as crucial underpinnings for AI applications.
Mistral AI recently acquired Koyeb, a cloud startup headquartered in Paris.
