Artificial intelligence is transforming the software industry, creating a new wave of winners and losers as companies adapt—or fail to adapt—to the AI-driven shift. A new report from RBC Capital Markets underscores that market dominance alone is no longer a safeguard against disruption. Instead, innovation and strategic AI integration are now the key to survival and growth. RBC analysts warn that legacy status does not guarantee success in the post-AI era. They point to past examples like Sears, Blockbuster, and Barnes & Noble, which failed to thrive despite their former market leadership during the rise of the internet. The same could happen to today’s software giants if they don’t evolve. Among the clear winners, Microsoft stands out. Despite being a long-time industry leader, Wall Street continues to underestimate the depth of Microsoft’s AI integration across its ecosystem. From Azure and Office to Teams, Dynamics, and LinkedIn, AI is now embedded in nearly every product. Its partnership with OpenAI, combined with its own in-house AI development, positions Microsoft to gain significant momentum. Intuit is another top performer. Long before generative AI entered the mainstream, the company began investing in AI for its core products. RBC highlighted AI-powered features in QuickBooks and TurboTax, noting that Intuit is well-positioned to capture more market share in industries like accounting and tax, where automation is both feasible and in high demand. HubSpot also earned strong marks. The CRM platform has aggressively integrated generative AI through tools like ChatSpot, Breeze, and Breeze Intelligence. With a unified tech stack and a culture focused on innovation, HubSpot is poised to challenge larger rivals by offering smarter, more intuitive workflows. On the infrastructure front, MongoDB is emerging as a critical enabler for AI applications, particularly those handling unstructured data. RBC noted that several AI-native startups are already building on MongoDB’s platform, signaling its growing importance in the AI stack. Pegasystems is another beneficiary of the AI shift. Its Blueprint workflow system, which allows businesses to modernize operations using natural language, could see expanded adoption as enterprise systems grow more complex with AI agents. On the other side of the spectrum, some established players are struggling. Salesforce’s Agentforce, while ambitious, remains largely in pilot stages with little evidence of advanced AI capabilities. RBC questions whether it delivers true agentic intelligence or just basic automation, raising concerns about its long-term viability. ZoomInfo faces perhaps the most severe threat. Its core business—providing contact data—could be rendered obsolete by large language models capable of generating accurate and up-to-date information on demand. RBC compares its current AI pivot to the Yellow Pages’ failed attempt to compete with Google, suggesting ZoomInfo may not survive the transition without a fundamental shift in strategy. The message is clear: in the AI era, companies must innovate relentlessly or risk being left behind.