Software Publishers NAICS 513210

Mar 13, 2025 - AI may Transform The Software Industry

• The rise of AI agents may mark a turning point in the software industry, according to Forbes. Traditional software relies on user input for predefined tasks. AI agents break free from these limitations by using machine learning, natural language processing (NLP), and advanced algorithms to act autonomously by analyzing data, making decisions, executing tasks without constant human intervention. AI agents also adapt in real time through continuous learning and improve their performance as they interact with users and environments. AI agents are also pushing software companies toward new business models. Software publishers are moving from software as a service (SaaS) to AI as a service (AIaaS), where agents provide continuous, personalized support. Some companies are also exploring models where users pay based on the value they receive from AI agents, such as the number of tasks completed or hours saved.
• Increasing use of artificial intelligence (AI) technologies, particularly generative AI, raises crucial questions regarding insurance for software publishers, according to Jean-Guibert Ciavaldini at the law firm Simmons & Simmons. Legal, contractual, and insurance challenges associated with the use of AI in sectors like marketing, process automation, and text analysis and processing differ across passive and active use of AI. Passive AIs exclusively analyze data and provide recommendations, while active AIs can make autonomous decisions based on these analyses. An active AI can lead to higher risks in terms of liability, requiring more robust coverage in professional liability insurance (PLI) and cyber risk insurance.

• Turmoil in the video games industry is likely to continue in 2025, games industry leaders have told GamesIndustry.biz. Publishing, development, and investment heads have said that high interest rates, oversaturated video game stores, and cautious investors will result in more restructures, layoffs, and closures. The fate of any particular company may depend on its size, according to Wired. Large companies like Microsoft, Unity, Electronic Arts, or Ubisoft can reduce staffing levels to cut costs but the company itself still exists. Independent game makers are often run by small teams of fewer than a few dozen people, however, so shutting down may be the only option.
• Software publishers increased prices moderately during 2024, according to the US Bureau of Labor Statistics (BLS). Software publishing industry employment and average wages for nonsupervisory employees increased slightly during the first month of 2025, according to the BLS. Software publisher sales are forecast to grow at a 5.63% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.