{
  "id": 2111788,
  "title": "Software development and tech services in the cross-hairs as AI marches on",
  "url": "https://urgent.news/2026/08/20/software-development-and-tech-services-in-the-cross-hairs-as-ai",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-20T10:15:00.000Z",
  "source": {
    "name": "The Register Science",
    "slug": "the-register-science",
    "url": "https://www.theregister.com/ai-and-ml/2026/08/20/software-development-and-tech-services-in-the-cross-hairs-as-ai-marches-on/5289668"
  },
  "original_language": "en",
  "account": "A recent study from Forrester, a global IT analyst company, predicts that AI will significantly impact software development, business transformation, and technology implementation. According to the research, labor-intensive knowledge-work industries will experience the most disruption. However, enterprise software is expected to adapt rather than be replaced, alleviating some concerns about a potential SaaS apocalypse.\n\nCraig Le Clair, vice president and principal analyst at Forrester, stated, \"Every technology and service market is facing an AI overhaul.\" The benefits of AI will not be distributed evenly across technology markets. Only three categories — infrastructure; data and AI; and identity, access, and network security — are set for clear growth. Technologies in other categories will have to adapt to the changes.\n\nForrester highlighted that business applications, governance and compliance, process automation, and customer experience will undergo transformations as AI reshapes workflows and user experiences. Despite these vulnerabilities, embedded workflows, regulatory requirements, switching costs, and increasing demand for data, orchestration, governance, and trust capabilities help maintain relevance in these fields.\n\nThe report specifically identified application development and software as categories likely to face significant disruption. This category encompasses tooling, content management, and IT management software that create, run, and connect applications and knowledge bodies. These activities and technologies are directly in the path of generative AI code development.\n\nAdditionally, AI has a profound impact on IT services. Direct AI substitution leads to reduced core implementation work. Forrester noted that service providers for implementing Oracle, Salesforce, SAP, and Workday are facing headwinds. The most severely affected market is business process outsourcing, which will see reduced rates for low-value services, testing, and software development services.\n\nThe massive investment in AI, including large-scale datacenter construction plans, has caused Gartner to increase its 2026 estimates for the total IT market to $6.37 trillion, a 14.2% year-on-year growth. This surge surpasses April's forecast of $6.31 trillion and February's $6.15 trillion. Much of this growth is attributed to the technology industry itself, which already invests around $1 trillion. This figure is projected to increase by 34.7% over the next few years.",
  "summary": "Forrester warns of disruption to long-established tech activity",
  "key_points": [
    "AI will significantly disrupt software development and tech services.",
    "Labor-intensive knowledge-work industries face the most disruption.",
    "Enterprise software adapts rather than being replaced by AI."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Register",
        "title": "Software development and tech services in the cross-hairs as AI marches on",
        "url": "https://urgent.news/2026/08/20/software-development-and-tech-services-in-the-cross-hairs-as-ai-2116528",
        "published": "2026-08-20T10:15:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}