How exposed are software stocks to AI tools? We put vibe-coding to the test (www.cnbc.com)

CNBC recently tested the potential impact of AI tools on software companies, specifically by employing Anthropic's coding tool, Claude Code, to create a clone of the project management platform Monday.com. The experiment, conducted by CNBC's Deidre Bosa and a colleague, demonstrated that even those without coding experience could utilize AI to generate functional software quickly. They successfully built a prototype with essential features like project boards and team assignments in a matter of minutes, illustrating the effectiveness of “vibe-coding”—a user-friendly approach to coding through plain English commands. This significant demonstration raises concerns for software companies that provide ancillary tools, such as Atlassian, Adobe, and HubSpot, which may face heightened vulnerability as AI capabilities advance. While systems of record like Salesforce are perceived as safer due to their foundational role in enterprise operations, the ease of creating comparable applications could still challenge their market positions. As the software sector grapples with stock sell-offs amid fears of AI disruption, this experiment suggests that investors might want to focus on distinguishing essential services from those that could easily be replaced by emerging AI technologies.