You're currently following this author! Click to unsubscribe from email alerts. Author of the AI Insider newsletter Almost a year ago, Michelle Miller co-authored a prescient study that warned the ...
Business Insider Subscribe Account icon Account icon AI Insider You're currently following this topic! Click to unsubscribe from email alerts. Following the money, work, and power reshaped by AI More stories Following the money, work, and power reshaped by AI Amazon CEO sees AI spending 'meaningfully' higher in 2027 We went inside Amazon's robot-powered warehouse to see if machines are taking jobs. What we found surprised us. Amazon tells software engineers what really matters as AI ushers in the era of the 'Renaissance Developer' Anthropic's IPO filing answers one of the biggest questions about the AI boom: Can AI labs actually make money? Search Business Strategy Economy Finance Retail Advertising Careers Law Media Real Estate Small Business The Better Work Project Personal Finance Tech Science AI Enterprise Transportation Startups Innovation Markets News Stocks Indices Commodities Crypto Currencies ETFs Lifestyle Entertainment Culture Travel Food Health Education Parenting Military & Defense Politics Reviews Home Kitchen Style Streaming Pets Tech Deals Gifts Tickets Video Big Business So Expensive View From Above Small Business Authorized Account Risky Business Boot Camp Still Standing How Crime Works Life Lessons Games Boxed Pipeline Knighthop Tally Live Events Tech Insider: Growth Mode The Long Play Stream Business Insider Level Up Community Job Scout Subscribe My account Log in Newsletters Saved Articles US edition Deutschland & Österreich España Japan Polska TW 全球中文版 Get the app She saw the AI software collapse coming almost a year ago. Here's what she expects next. By Alistair Barr You're currently following this author! Click to unsubscribe from email alerts. Follow Author of the AI Insider newsletter
Michelle Miller, partner and managing director at AlixPartners. AlixPartners 2026-02-06T10:00:01.384Z Read in app Copy link Email Facebook WhatsApp X LinkedIn Bluesky Threads lighning bolt icon An icon in the shape of a lightning bolt. Impact Link .save-icon-fill { display: none; } .save-icon.is-active .save-icon-fill, .save-icon-fill.is-active { display: block; fill: currentColor; } Save Saved This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Almost a year ago, Michelle Miller co-authored a prescient study that warned the software industry would be squeezed by the rise of generative AI.
Now, software stocks have plunged for many of the same reasons Miller and her colleagues at AlixPartners laid out back in April.
So, I checked back in with Miller this week to see where she sees things going from here. As co-lead of the Enterprise Software Practice at AlixPartners, she's steeped in this stuff, so pay attention.
Michelle Miller: We think several factors are behind the slump in software / SaaS stocks in recent weeks, but we would also say that these forces have been pressuring the software industry for a while and are now accelerating. These include pent-up fear around AI disruption, outdated pricing models, general macro uncertainty, as well as concerns around AI-based valuation frameworks and valuation premiums. Previously, enterprise software company valuations were driven by investors' growth expectations. Now, software growth is being challenged by the AI-driven forces I mentioned earlier, and we see multiples decreasing.
Regarding trending news (e.g., Anthropic's Cowork), this is another front-of-mind example of an AI tool lowering the barrier to entry, gaining traction, and disrupting incumbent workflows.