Software stocks, including Salesforce and HubSpot, have slumped this year on concern that AI tools could make it easier for companies and developers to build their own software, rather than buying SaaS services. This "buy versus build" debate has been a hot topic on Wall Street in recent months, with one study warning that over 100 public software companies risk getting squeezed between nimble AI startups and powerful AI-ready tech giants.
The attitude that you bring to the office-and to your employees, your peers, and the people you serve alongside every day-is what ultimately will determine a lot of your success,
Agencies are being rocked by the rise of AI. The solution? Bring on more humans. No, seriously. On Tuesday, digital agency Incubeta announced its acquisition of RocketSource, a consultancy that helps advertisers understand what drives customer behavior using data science and predictive analytics. The price of the deal was not disclosed. The traditional agency business model is falling apart, according to Alex Langshur, CEO of Incubeta in the Americas, because its cost structure is being "obliterated" by AI.
He predicted software would take over large swaths of the economy, and that's exactly what happened. Books became software, and Amazon beat Barnes & Noble. Movies became software, and Netflix won. Music became software, and Spotify rules over labels. Now, we've entered a new era in which some software companies could be eaten by AI. This technology makes it easier to use and create new software, challenging established SaaS providers and upending business models.
At first, I took things a bit personally, but then when I connected with other fellow agency owners and consultants, I noticed that many of them were going through the same thing at some level, at least on the marketing side.The truth is that we're at an inflection point. The forces reinventing marketing are not merely external; they're structural. Economic shifts are the main driver, but also AI disruptions, talent trends and evolving client expectations are fundamentally altering the way value is delivered.
More recently, I introduced the Enron documentary to my daughter, and I was shocked all over again by how much that company wooed Wall Street while pursuing wild, expensive infrastructure projects. These two threads just came together in the form of a fascinating interview I just spotted: The Institute for New Economic Thinking scored an interview with famed short seller Jim Chanos recently.