Software makers' best may not be good enough as AI fears mount

AI-related fears are weighing on enterprise software stocks despite signs of accelerating revenue at major vendors. Reuters reports that investor concern over AI displacing software jobs has driven the software and services index about 16% lower year-to-date, versus a 3.2% rise for the S&P 500. Salesforce is forecast to post its fastest quarterly revenue growth in 13 quarters (around +12.5% to $9.83bn), but rising costs may curb profit growth. ServiceNow and Workday face upcoming earnings where executives are expected to demonstrate how AI is boosting revenue and customer retention. Overall, the piece frames the sector as under pressure as markets wrestle with the long-term implications of AI adoption.