software AM market analysis — 2026-08-15

The software sector’s morning read-through centres on whether enterprise AI features convert into sustained workflow use rather than initial curiosity. Google is positioning Gemini Enterprise as a broad platform tied into everyday business processes and operational practices such as DevOps and site reliability work, while coverage of Microsoft 365 Copilot points to expanding adoption inside organisations, with engagement now treated as the key signal of whether these tools stick. That distinction matters because subscription software economics, as laid out in guides on recurring revenue and subscription business models, depend on customers realising ongoing value rather than trialling a feature once and moving on.

A related tension is emerging between monetisation and delivery cost. AI capability can support stronger pricing, but running AI workloads also adds infrastructure expense, which puts pressure on margins if usage-based pricing does not keep pace. Meanwhile, workflow automation across the enterprise remains fragmented, split between robotic process automation, low-code platforms and ecosystem-specific tools, which leaves room for vendors that can combine automation and AI within an existing platform to gain ground on narrower point solutions. Retention and pricing discipline, rather than headline AI announcements, look like the more useful indicators to track through the session.