OpenAI's COO explains why AI optimism extends to legacy software

Traditional software producers are staying ahead in AI adoption, says OpenAI's chief operating officer.

During a Wednesday episode of the "Uncapped" podcast, Brad Lightcap remarked that the downturn in software stocks might have been premature, observing that software firms are intently pursuing AI integration.

"Firstly: Many of these firms are just as driven and rapidly progressing as any startup," he declared. "Secondly: They boast excellent client relationships."

Lightcap became a part of OpenAI in 2018 as its chief financial officer and elevated to the role of COO of the frontier lab in 2022.

In Wednesday's podcast, he shared that through OpenAI's collaborations with these companies, he observes a transformation in how they perceive the customer experience and how they aim to tap into new markets with AI.

He noted that it would be worrisome if this group, including companies like Salesforce, Microsoft, and Oracle, were complacent.

"Everyone is trying to match paces, which I find thrilling," he shared. "I would say if you support AI and startups, it might be worthwhile, from a contrarian point of view, to also back long-standing software companies."

Lightcap's statements come in the wake of a significant downturn in software stocks, famously termed the "software apocalypse."

The decline began in early February, as wary investors reacted to Anthropic's new AI tool capable of assisting in various tasks within the legal field.

Companies like Salesforce, Snowflake, and Microsoft have seen a 24% to 30% drop in their stock values this year, driven by fears that firms could use AI to develop their own solutions.

The COO of OpenAI isn't alone in maintaining a positive outlook towards longstanding industry players.

Dan Rogers, the CEO of Asana, a work-management company which suffered notably in the decline, mentioned that AI agents enhance the appeal of his company's software.

Several tech figures have commented on the potential financial benefits from utilizing AI or designing your own software.

In a February podcast, Andressen Horowitz general partner Anish Acharya noted that using AI for developing applications like resource planning or payroll tools might only reduce expenses by about 10%.

"Considering the immense potential of these models, why would you choose to overhaul payroll or ERP or CRM," Acharya questioned, alluding to enterprise resource planning and customer relationship management tools.