- Companies are ‘replatforming’, moving from traditional applications to AI, says Mistral CEO
- Arthur Mensch notes that many need “the right infrastructure” to achieve real success with AI
- Gaps could emerge to separate companies that use AI from those that do not
Arthur Mensch, CEO of Mistral AI, predicts that more than half of today’s enterprise SaaS software could be replaced by AI tools, raising investor questions and concerns about traditional software.
Mensch explained how, with the “right infrastructure” (and that’s an ongoing issue right now, according to several other reports and studies), companies can easily and quickly create custom AI-based applications to automate workflows without having to rely on traditional third-party vendors.
He described this as a “replatforming” trend, in which companies are now faced with the decision between legacy IT systems and AI-powered alternatives.
Are traditional workplace applications being replaced by AI?
“AI allows us to develop software at the speed of light,” Mensch said in an interview with CNBC.
While the emerging “platform shift” is clearly a threat to traditional providers who risk being left behind, Mistral AI is clearly not worried about this.
Quite the opposite. “Replatforming is a big opportunity for us,” he said, “because we now have over 100 enterprise customers coming to us as well with the willingness to change and replatform their IT system.”
However, traditional software versus custom AI applications won’t be the only difference we could see. A gap will also emerge between companies with the right infrastructure and those without, because infrastructure refers to much more than just servers.
Businesses also need strong, clean databases, the right cloud and computing layer, top-notch security, and of course, a trained workforce; These are all challenges that companies constantly face when implementing AI.
While Mensch’s comments about replacing traditional applications with AI give us a good idea of what’s to come, it’s clear that the companies that will be most successful will be those that put that “right infrastructure” in place to lay the foundation for growth.
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