>More than half of the software purchased by companies today could eventually be replaced by AI, Mistral AI CEO Arthur Mensch said in an interview with CNBC. The statement comes at a time when software stocks are under pressure due to concerns that AI will undermine SaaS business models.

According to Mensch, a major shift is already happening, with companies increasingly choosing to build their own AI-based applications instead of purchasing traditional SaaS services. He estimated that more than 50% of today’s SaaS spending could shift to AI solutions.

“We are also seeing with our customers that we can create fully customized applications within a few days to run a workflow — for example, a purchasing workflow or supply chain workflows — in a way that, five years ago, would have required a vertical SaaS solution,” Mensch said. “This platform change is a great opportunity for us, as we now have more than 100 corporate customers who are also turning to us with a desire to perhaps change and modernize their IT systems — for example, getting rid of things they bought 20 years ago and which are starting to become quite expensive.”

Even so, Mensch believes that basic business systems that store and structure company data will remain in place and become an important basis for AI applications.

Mistral AI recently purchased Koyeb, a Paris-based cloud startup.