Vista’s Robert Smith says enterprise software firms will be among the last to profit from AI—but that the gains will be huge

In the United States, Robert Smith of Vista Equity Partners discussed the impact of generative AI on enterprise software during the CAIS Alternative Investment Summit. He noted that while enterprise software firms will be among the last to profit from AI advancements, the potential gains are significant. Smith highlighted that approximately 80% of Vista's portfolio companies have already implemented or developed generative AI tools, with expectations to reach 100% by the end of the year. He emphasized the importance of companies maintaining control over their data to avoid risks associated with external data handling. Smith also pointed out that the rise of generative AI is expected to drive substantial investments in infrastructure, with Goldman Sachs estimating around $1 trillion in spending by major tech companies on data centers and related technologies over the coming years. This shift mirrors past technological transformations, where hardware vendors initially benefited before software and services companies reaped the rewards. Smith's insights suggest a transformative period for enterprise software, with the potential for high returns on investment as companies adapt to these new technologies.