AI to replace half of Mistral AI’s software? Here’s what CEO Arthur Mensch said as tech stocks face headwinds
Mistral AI Chief Executive Arthur Mensch said on Wednesday that more than half of the company’s existing software will likely be replaced by artificial intelligence (AI). CNBC reported.
Addressing investors’ concerns about software stocks, Mensch said, “Artificial intelligence allows us to develop software at the speed of light.” He made these remarks at the India Accelerates event held on the sidelines of the ongoing AI Impact Summit 2026, hosted by New Delhi from February 16-20.
Mensch’s remarks come after leading software stocks witnessed a sharp selloff. This crisis was partly attributed to the launch of Cowork by Anthropic, as investors became increasingly concerned that advanced artificial intelligence tools could replace functions carried out by traditional enterprise software. Investors are also voicing concerns that AI could eat away at software-as-a-service (SaaS) business models. The iShares Expanded Technology-Software Sector ETF, which includes major holdings such as Microsoft and Salesforce, is down more than 20% this year. Shares of leading IT companies in India such as Tata Consultancy Services and Infosys also decreased.
“I would say more than half of what IT is buying right now in terms of SaaS will shift to AI,” he said, adding that as long as companies have the “right infrastructure,” they can use AI to manage certain business functions by connecting their data to AI systems to build their applications.
Mensch says ‘Re-platforming’ is a big opportunity
He said businesses are now looking to use AI more than existing SaaS, clearly indicating that a “re-platforming” is taking place.
Describing this as a “huge opportunity”, Mistral AI CEO said that they have now acquired more than 100 corporate customers and that these customers have approached them with plans to modernize their information technology systems. He also said many of these businesses are also considering replacing old appliances purchased 20 years ago, making them costly to maintain.
Enterprise customers see AI as a way to re-platform to be more efficient and less costly, he added.
Mensch’s views were echoed by Rubrik CEO Bipul Sinha, who said “workflow software” will likely be “significantly disrupted by AI.”
Providing some relief, the CEO of Mistral AI said software built around core record-keeping systems is less likely to be disrupted, adding that these platforms often replace, rather than work alongside, AI tools when managing a company’s core data. Moreover, Sinha noted that system of record or data infrastructure software that enables AI “will be positive.”
Mistral plans to expand India
As global tech giants announce expansion plans in India, Mistral CEO said the company plans to open its first office this year. The AI company is currently working with companies operating in India but is currently exploring potential customers in the public and private sectors in the country.
In terms of its approach to India, Mistral AI CEO said that the approach will be different in Europe when setting up data centers in India, as the firm plans to tie up with companies that already have a physical infrastructure presence in India.
