Corporate software spending is being rapidly reshaped around generative artificial intelligence (AI). Budgets that once focused on software-as-a-service (SaaS) are moving to AI tools, accelerating a shift in the market landscape.

Tech outlet TechRadar reported on March 25 that a recent analysis found corporate software spending is being reorganised around AI, with OpenAI and Anthropic emerging as key beneficiaries.

The survey found companies are no longer debating whether to adopt AI, but which AI provider to allocate more budget to. That indicates AI has moved beyond an experimental tool and has become core operating infrastructure.

An analysis of corporate budgets worth about $18 billion showed software spending by mid-sized and large companies rose about 58% from a year earlier. The increase was assessed as being driven more by a reallocation of budgets from existing software to AI than by overall market expansion.

The analysis also showed a clear concentration of spending on certain companies. Anthropic recorded growth of 428%, while AI coding tool Cursor rose more than 600% and is spreading quickly across development organisations. OpenAI's growth rate slowed somewhat, but it still secured large-scale spending steadily and maintained market dominance.

As AI spending surges, traditional SaaS companies are losing ground. At some companies, existing SaaS spending has stagnated or turned to a decline, and SaaS spending fell by about 8% among small businesses. The findings suggest companies are scaling back legacy systems that lack AI integration and switching to AI tools that can boost productivity.

Pricing structures are also changing. AI-based services are adopting higher pricing than existing software, with price increases reaching 20 to 37%. Companies are therefore reviewing existing software contracts and reshaping limited budgets around AI.

The industry views the shift as a structural transition rather than a temporary change. As AI becomes a core element of business operations beyond simple feature additions, a structure is forming in which a small number of AI vendors absorb a growing share of budgets. The faster AI-centric budget reshaping accelerates, the more traditional SaaS companies' market share is expected to shrink.