Bridgewater warns: the rise of AI threatens the survival of traditional software companies

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AIMPACT message, April 28 (UTC+8): Bridgewater warned in a client report that emerging AI tools such as Claude Code pose an existential threat to traditional software companies, in a similar way to how Amazon replaced Barnes & Noble bookstores years ago. The report was authored by co-CEO and co-chief investment officers Bob Prince, Greg Jensen, and Karen Karniol-Tambour. Software industry stocks have been hit by a sell-off, with the S&P 500 Software & Services index down 16.6% year to date. At the same time, layoffs justified as cost savings from AI have spread across industries, from large tech companies to financial services firms. In the report, Bridgewater wrote: "The market has begun to price the risk to application software companies; enterprises must either evolve alongside AI or face disruption."
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