Market Brief: The AI Integration Shift Enterprise software is undergoing a fundamental transformation as Artificial Intelligence shifts from a standalone tool to a core, embedded layer. Recent data indicates that the "AI-as-a-layer" model is stabilizing the sector, with total global AI spending projected to reach $2.5 trillion in 2026, a 44% increase year-over-year. Legacy software giants are emerging as primary winners in this transition. Major providers like Salesforce, Oracle, and Microsoft are successfully integrating "agentic AI" into their existing ecosystems. These autonomous agents handle high-value tasks that were previously difficult to automate, such as complex research and service-desk management. The software sector is currently navigating a period of valuation correction. The S&P 500 Software & Services Index has seen significant volatility, recently trading down 12.6% over a one-month period as of late February 2026. However, demand remains robust, with large enterprises leading the charge. Approximately 59% of IT professionals at large firms have confirmed active AI deployment. Market trends suggest AI is becoming a supporting infrastructure rather than a replacement for enterprise platforms. This "subordinated AI" approach reduces risks like non-deterministic errors by keeping intelligence within the guardrails of proven software stacks. This method is driving a massive increase in AI inference demand, justifying the global expansion of data centers. Cloud solutions remain the dominant delivery model, accounting for over 71% of the AI market share. Meanwhile, the generative AI software segment is expanding at a 29% compound annual growth rate. This growth is increasingly fueled by specialized, domain-specific tools rather than broad, general-purpose models. Industry sentiment is shifting from "AI euphoria" to a focus on operational efficiency. While 88% of organizations now use AI in at least one business function, only about one-third have scaled these programs across the entire enterprise. This gap provides a significant runway for legacy vendors to expand their footprint as they roll out mature, embedded agents to their global customer bases. Strategic independence and "Sovereign AI" are also becoming priorities, with more companies factoring a solution’s country of origin into their vendor selection. This ensures that AI deployment remains compliant with local laws and infrastructure, further cementing the role of established software providers who have existing trusted relationships and robust compliance frameworks in place.