software PM market analysis — 2026-09-25

Enterprise software demand is tilting firmly toward AI-native applications, with Aithority reporting a 334% surge in AI-native spend even as buyers push harder on cost control. The pairing signals a maturing market where adoption depends on measurable value rather than novelty.

Cloud vendors are responding by folding development, testing and release tooling into single platforms. AWS positions its developer tools as core infrastructure for faster build and release cycles, while its enterprise AI materials frame adoption as an organisational undertaking spanning use cases and operational change, rather than a simple feature rollout.

Agentic development tools are extending this shift. Kiro presents AI as a collaborator across architecture, workflow automation and software quality, moving past code generation as the main selling point. The repositioning suggests vendors expect buyers to judge developer tools on workflow coordination rather than output speed alone.

For subscription software more broadly, rising AI-native spend alongside tighter cost scrutiny points to closer examination of recurring revenue models. Vendors will need to demonstrate that AI features add durable workflow value separate from incremental additions bolted onto existing subscriptions.