As Anthropic Costs Mount, Businesses Pressure Software Firms to Shorten Contracts

Businesses are spending more on Anthropic and other AI providers, and the additional budget has to come from somewhere. One natural target for cuts is other software.

While businesses aren’t abandoning their enterprise applications outright, they’re putting themselves in a better position to do so if AI makes traditional apps less important. For starters, many are demanding shorter contracts and other favorable terms from longtime software as a service vendors, according to executives and consultants.