AI's Next Act: Not Just Hype, But Real Dough in Private Software

• AI investment opportunities are shifting from hyperscalers to private enterprise software companies.
• Agentic AI, which uses AI agents to perform specific company tasks, is driving significant productivity gains.
• Vista Equity Partners is aggressively investing in and deploying AI across its portfolio of enterprise software companies.
• AI will likely reshape jobs, with some roles eliminated and others augmented by AI technology.

Beyond the Hype Train: Real AI Money

Yo, check it – Fresh Prince here, reporting live from the frontlines of the tech revolution. Forget those flashy headlines about robots taking over the world. The real story ain't on the surface, it's deeper than a Bel-Air swimming pool. We're talking about where the real money's gonna be made in AI, and according to Robert Smith from Vista Equity Partners, it's not where you think.

Agentic AI: Your New Office Buddy?

Smith's saying that the big boys – Nvidia, Microsoft, the whole crew – they've already had their moment in the sun. Now, it's time for the unsung heroes of the AI world: private software companies. These cats are using 'agentic AI' – think of it as having a super-smart digital assistant that can actually get stuff done – to seriously boost productivity. Like Carlton trying to learn hip-hop, they're taking something new and making it work for them. Speaking of smart, you should check out Alphabet's AI Gamble: Is Google Betting Big or Just Betting? to see how even the big players are navigating this AI game. It's like when Geoffrey tries to give fashion advice – sometimes you gotta see the whole picture to understand what's going on.

Vista's Secret Weapon: The Agentic Factory

Vista, with their hundred billion in assets, ain't just sitting around watching paint dry. They've built themselves an 'agentic factory' to inject AI into all their portfolio companies. It's like turning the Banks mansion into a tech incubator. Smith says they're already seeing serious results, with a bunch of their companies raking in the dough thanks to this AI transformation. It's all about being proactive, you know? Like when I showed up in Bel-Air, I didn't wait for things to happen, I made them happen.

Software Eating Services: A New Kind of Food Fight

Remember when Nvidia's CEO said AI was gonna 'eat software'? Well, Smith's flipping the script. He's saying agentic AI will actually help enterprise software 'eat services'. It's like a West Philly street fight, but with algorithms. Instead of coding everything from scratch, companies can use AI-powered tools to automate tasks and get things done faster and more accurately. It is like when I tried to cook Thanksgiving dinner, I quickly realized I needed some help.

Productivity on Steroids: AI's Real Impact

The numbers don't lie. Vista's seeing productivity gains of 30% to 50% in coding. Tasks that used to take hours now take seconds. Smith says it's like turning 20 cents into ten bucks. Talk about a return on investment. Just don't expect me to start balancing the Banks' checkbook anytime soon. Though, if AI can do that, maybe I'll reconsider.

Job Market Shakeup: Adapt or Get Left Behind

Alright, let's get real. This AI revolution ain't all sunshine and rainbows. Some jobs are gonna disappear, no doubt. But Smith's saying new ones will pop up, and existing ones will be transformed. The key is to adapt. As he puts it, 'the person using AI will replace your job'. It's like learning to navigate Bel-Air – you either adapt to the new environment, or you get left in the dust. And trust me, nobody wants to be the Geoffrey of the AI world – always one step behind.