The Software Revolution You Need to Know About
Mistral AI's CEO just dropped a bombshell: over 50% of current enterprise software could be replaced by AI systems. This isn't speculation, it's already happening as major software stocks plummet over 20% this year.
Arthur Mensch told CNBC that businesses are rapidly shifting their spending from traditional Software as a Service (SaaS) to AI-powered solutions. The shift is so dramatic that even giants like Microsoft and Salesforce are feeling the pressure.
The game-changer? AI can now develop custom software "at the speed of light" according to Mensch. What used to take months and cost thousands in custom software development can now happen in days.
Mistral AI is witnessing this transformation firsthand with over 100 enterprise customers. These companies are ditching expensive software they bought 20 years ago and replacing it with AI systems that are more efficient and cost-effective.
Here's a real-world example: tasks like procurement workflows and supply chain management that previously required specialized vertical SaaS can now be handled by custom AI applications. Companies are creating these solutions in just a couple of days by connecting their data to AI systems.
The CEO emphasized that businesses with the "right infrastructure in place" can quickly build AI applications to automate various work processes. This "replatforming" represents a massive opportunity for businesses to modernize their operations.
Rubrik CEO Bipul Sinha confirmed this trend, stating that "workflow software" faces significant disruption from AI. However, he noted that core data infrastructure software that enables AI will actually benefit from this shift.
Not everything will change though. Mensch clarified that "systems of record" software, which manages organizational data and often works alongside AI, will remain essential.
How This Impacts MSMEs in Malaysia
Malaysian small and medium businesses have been stuck paying for expensive SaaS subscriptions that often include features they never use. This AI shift levels the playing field, allowing MSMEs to build custom solutions tailored exactly to their needs without breaking the bank.
The cost implications are massive for Malaysian businesses. Instead of paying RM500-2000 monthly for multiple SaaS subscriptions (CRM, accounting, inventory, project management), you could consolidate these into AI-powered custom applications at a fraction of the cost.
Your competitors who adopt AI workflow automation first will gain a significant speed advantage. Tasks that currently take your team hours or days, like processing purchase orders or managing supplier communications, could be automated and completed in minutes.
Malaysian businesses facing tight labor markets and rising wages can use AI to augment their existing teams. One employee equipped with AI tools can now handle workloads that previously required two or three people.
The timing is perfect for Malaysian MSMEs. While large enterprises are "replatforming" their 20-year-old systems, you can leapfrog directly to AI-powered operations without the baggage of legacy software.
What You Should Do to Adopt/Adapt This
Start by auditing your current software subscriptions and identify which workflows could be automated with AI. List the repetitive tasks your team performs daily, especially in procurement, customer service, scheduling, and data entry.
Begin with one high-impact process rather than trying to transform everything at once. A pilot project automating your quotation process or customer inquiry handling can demonstrate ROI quickly and build confidence.
Ensure you have your business data organized and accessible, as AI systems need quality data to work effectively. This might mean cleaning up your customer database, standardizing your inventory records, or digitizing paper-based processes first.
Partner with experienced AI implementation consultants who understand Malaysian business contexts and can guide you through the technical setup. The difference between successful AI adoption and wasted investment often comes down to proper implementation and integration with your existing operations.
Reference
https://www.cnbc.com/2026/02/18/ai-mistral-software-switch-ceo-india-ai-impact-summit.html
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