- Businesses are ‘replatforming’, moving from traditional applications to AI, says Mistral CEO
- Arthur Mensch notes that many need to “put the right infrastructure in place” to achieve real success from AI
- Gaps could emerge between companies that use AI and those that don’t.
Arthur Mensch, CEO of Mistral AI, predicts that more than half of today’s enterprise SaaS software could be replaced by AI tools, raising questions and concerns among investors about traditional software.
Mensch explained how, with “the right infrastructure in place” (and this is a persistent problem right now, according to various other reports and studies), businesses can easily and quickly build custom AI-powered applications to automate workflows without having to rely on traditional third-party vendors.
He described this as a “replatforming” trend, in which companies now have to choose between existing IT systems and AI-based alternatives.
Are traditional workplace applications being replaced by AI?
“AI allows us to develop software at the speed of light,” Mensch said in an interview with CNBC.
If emerging “replatforming” clearly poses a threat to traditional suppliers who risk being left behind, Mistral AI is clearly not worried about it.
Quite the contrary. “The platform redesign is a big opportunity for us,” he said, “because we now have over 100 enterprise customers who are also contacting us with the desire to perhaps change and restructure their IT system.”
However, traditional software versus custom AI applications won’t be the only difference we might see. There will also be a gap between companies with the right infrastructure and those without it, because infrastructure means more than just servers.
Businesses also need strong, clean databases, a suitable cloud and IT layer, top-notch security and of course a skilled workforce – and these are all challenges that businesses constantly face when implementing AI.
While Mensch’s comments about replacing traditional applications with AI give us a good idea of what lies ahead, it’s clear that the most successful companies will be those that implement that “right infrastructure” to lay the foundation for growth.
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