As AI Makes Software Cheaper to Build, Data and Distribution Become the Moat

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AI Shifts Software Moats, Watch Data and Distribution

AI cuts software build costs, making proprietary data and networks the edge for winners.

AI is lowering the cost of creating software, which on the surface sounds like a win for everyone. But it’s turning the spotlight to data and customer reach as the real barriers to competition. The companies that pile up unique, useful data or embed deeply into business workflows hold the strongholds now. Think Palantir with its detailed operational data or CrowdStrike crunching trillions of security events daily – these are not easy to replace with better AI alone. Even ServiceNow’s vast workflow ecosystem creates switching costs that protect its turf. Not every old guard is safe though. Salesforce and Snowflake seem squeezed, as AI eats into their license models and data dependency. For South Africa, the big question is which JSE firms will harness such moats. Look at companies like MTN or Standard Bank, which rely on extensive data and customer ecosystems. The rand’s sensitivity to global tech shifts means USD/ZAR will also be a good barometer of sentiment on how these AI-driven moats develop. If AI-powered startups break through, market leaders could lose ground faster than expected. this is just our opinion and not financial advice