2 min read
The U.S. software industry is navigating one of its most significant inflection points as artificial intelligence reshapes products, pricing models and competitive dynamics. In H1 2026, the software industry demonstrated improved fundamentals after the 2021 valuation reset, yet market confidence remains constrained as investors weigh how AI will redefine the software landscape. Software market trends reveal a more selective environment where market leadership has shifted toward segments viewed as direct beneficiaries of AI adoption, including cloud infrastructure, cybersecurity and data platforms.
AI is also transforming how software vendors capture value. Traditional seat-based SaaS monetization is giving way to usage- and outcome-based pricing models, with enterprises increasingly purchasing AI solutions rather than building them internally—creating a clear separation between AI-native and non-AI software companies.
Key themes highlighted in the J.P. Morgan Software Report:
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AI's accelerating influence on enterprise software adoption, efficiency and delivery economics
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Bifurcation of software venture investment between AI-native and non-AI companies
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Public software valuations and the market's shift toward rewarding profitable growth
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SaaS business model evolution from seat-based to consumption- and outcome-based pricing
Read the full software industry report for a comprehensive analysis on sector-specific trends in the software industry, and connect with our Innovation Economy Banking team to learn more about what these trends might mean for your business.
Contributors
Dan Hardman
Managing Director, Co-Head of Software, Innovation Economy
James Carlin
Managing Director, Co-Head of Software, Innovation Economy
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.