LIVE MARKETS-The AI versus software debate is "flawed" and "illogical," says HSBC

Reuters02-10 22:21
LIVE MARKETS-The AI versus software debate is "flawed" and "illogical," says <a href="https://laohu8.com/S/HSBC">HSBC</a> 

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THE AI VERSUS SOFTWARE DEBATE IS "FLAWED" AND "ILLOGICAL," SAYS HSBC

Despite persistent headlines predicting that artificial intelligence will disrupt the enterprise software sector, brokerage firm HSBC sees the AI replacing software narrative as 'flawed' and 'illogical' - a view aligning with Nvidia's NVDA.O CEO Jensen Huang.

AI's usefulness in the enterprise is limited without software, and the most effective solutions come from collaboration between AI and established platforms, HSBC says.

"AI and software need to work together and leverage each other's strengths," the British brokerage said.

According to HSBC, it is neither practical nor economically sound for companies to rely on AI to write their own applications.

Software vendors are best positioned to harness AI because they possess domain expertise, robust sales channels, trusted relationships, and large teams of developers who are now more productive with new AI tools.

HSBC maintained its 'buy' rating on Oracle ORCL.N, Microsoft MSFT.O, Amazon.com AMZN.O, Salesforce CRM.N, Intuit INTU.O, Meta META.O, HP HPQ.N, TE Connectivity TEL.N, Zoom ZM.O, and Palantir PLTR.O.

The brokerage believes enterprise software vendors will thrive as AI becomes an integral part of their offerings, rather than a replacement.

(Akriti Shah)

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