Mark Cuban argued that traditional Software-as-a-Service is dying as artificial intelligence enables tools to adapt in real time to each business’s unique workflows. He emphasized that future value lies in applying AI models to specific operational needs rather than relying on static, one-size-fits-all platforms.

The SPDR S&P Software and Services ETF has declined 17.56% year-to-date, underperforming the iShares Expanded Tech-Software Sector ETF’s 19.34% drop. This underperformance reflects investor concerns over legacy SaaS firms’ ability to pivot toward AI-driven, personalized solutions.

Investors may reallocate from broad software ETFs toward companies offering AI integration and customization services, betting on firms that can bridge the gap between advanced models and real-world business applications. The shift suggests a selective approach to software exposure until clear AI implementation leaders emerge.