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AI Seat Cuts Slash Software Margins, Gartner Warns

By Drooid · · How we work

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Story summary
  • U.S. software firms report severe margin compression as AI-driven seat cuts slash per-seat revenue.
  • Gartner predicts over 80% of AI-enabled providers will abandon per-seat pricing by end-2026.
  • McKinsey says firms that don’t update revenue systems face double-digit gross-margin loss.
  • 71% of software companies suffer revenue leakage, with over 30% losing more than 5% annually.
  • 82% of finance departments still use manual spreadsheets for billing and revenue reconciliation.