More than 50% of enterprise software could switch to AI: Mistral CEO
Mistral AI founder Arthur Mensch at the ‘Nvidia GTC’ meeting at the 2025 VivaTech conference in Paris, France, on Wednesday, June 11, 2025.
Nathan Laine | Bloomberg | Getty Images
NEW DELHI – More than 50% of businesses’ existing software could be replaced with artificial intelligence, Mistral AI’s CEO told CNBC on Wednesday, potentially raising investor concerns about software stocks.
Mistral AI CEO Arthur Mensch’s comments follow a sell-off in big software names fueled in part by Anthropic’s Cowork product, as investors become increasingly concerned that AI can do more than current enterprise software does.
Investors fear that AI could consume business models called software-as-a-service, or SaaS. iShares Extended Technology-Software Sector ETFwhich counts names like Microsoft and Salesforce among its biggest holdings, has lost more than 20% this year. Major software stocks in India such as Tata Consultancy Services and Infosys also fell.
“I would say more than half of what is being purchased by IT right now in terms of SaaS will shift to AI,” Mensch told CNBC at the India Accelerates event on the sidelines of the AI Impact Summit in New Delhi, India.
“Artificial intelligence allows us to develop software at lightning speed,” Mensch added.
Mistral’s CEO said businesses can connect their data to AI systems to create applications to run specific parts of the business, as long as they have the “right infrastructure.”
“Then we meet with our customers… in a matter of days, we can build completely custom applications to run a workflow, to run a procurement workflow, or to run supply chain workflows, for example, five years ago I would have said you would actually need a vertical SaaS.”
Mensch said a “replatforming” is happening where businesses are looking to use more AI instead of existing SaaS.
“Replatforming is a big opportunity for us because we now have over 100 enterprise customers coming to us wanting to replace their IT systems and replatform, meaning get rid of some of the things they bought 20 years ago, and that’s starting to get a little expensive,” Mensch said.
“They see AI as a way to replatform the thing in a way that makes it more efficient and less costly.”
But software focused on systems of record “will not change,” Mensch said. This type of software is responsible for data within an organization and often works with artificial intelligence.
Rubrik CEO Bipul Sinha also has similar views to Mensch. In an interview with CNBC on Wednesday, Sinha said “workflow software” could be “significantly disrupted by AI.” But AI-enabled system of record or data infrastructure software “will be a positive.”
Mistral expansion in India
Mensch also told CNBC that the company plans to open its first office in India this year as it expands into a market where global tech giants are trying to gain a share.
Mistral currently works with international companies operating in India but is currently “seeking” potential clients based in the country in both the public and private sectors.
Mensch said that while Mistral is building data centers in Europe, the approach in India will be different and that the company plans to partner with companies that have a physical infrastructure footprint in the country.
The Indian government is pushing AI firms to create models that can work locally with data stored domestically. India also has several languages such as Hindi and Punjabi, and Mistral said broad language models can accommodate these languages.
“This is something that will eventually be very important for the Indian consumer market,” Mensch said.
