ARES EXEC: SOFTWARE MARKET SPLITS AS AI FEARS FADE

INDUSTRY DESK■ 1 MIN READ

WED, SEP 9, 2026

■ AI-SUMMARIZED FROM 2 SOURCES ▸ TIMELINE

Blair Jacobson, co-president of Ares Management, says the software industry has bifurcated after early-year concerns that artificial intelligence would displace the entire sector. The market split reflects diverging performance across software companies as investors reassess AI's actual impact.

Speaking at the IPEM Global Conference in Paris, Jacobson described a significant shift in investor sentiment over the past nine months. "The general view was all software will get eaten by AI," he told Bloomberg. "Seven, eight, nine months later, we've actually seen a bifurcation in that market." The division suggests some software companies are thriving while others struggle, rather than across-the-board disruption. Jacobson emphasized that investors must now exercise greater selectivity and conduct more rigorous due diligence when evaluating software opportunities. The comments reflect broader market recalibration as companies integrate AI capabilities and demonstrate differentiated value propositions. Software stocks have recovered from mid-year lows as investors move beyond blanket AI disruption narratives toward sector-specific analysis.

■ SOURCES

► Bloomberg Tech ► Bloomberg Tech

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ARES EXEC: SOFTWARE MARKET SPLITS AS AI FEARS FADE

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