Jensen Huang Says AI Agents Will Work With Software, Not Replace It
Nvidia CEO Jensen Huang says AI agents will rely on existing software tools, not replace legacy enterprise platforms anytime soon.
The recent buzz around AI agents like Claude Cowork has sent ripples through global stock markets, especially across the software services sector. After Anthropic introduced its advanced AI workplace assistant, investor anxiety grew over whether traditional software companies could soon become obsolete. However, Nvidia CEO Jensen Huang believes those fears are misplaced.
Speaking to CNBC, Huang addressed concerns that artificial intelligence could replace legacy software firms. “I think the markets got it wrong,” he said, pushing back against the narrative that AI agents will make established enterprise tools redundant.
Anthropic’s Claude Cowork sparked fresh debate about AI’s growing capabilities, leading to volatility in the stocks of major IT services firms, including Indian giants like TCS and Infosys. Investors worried that AI systems capable of handling workplace tasks might eventually reduce the need for conventional enterprise software solutions.
Huang, however, offered a different vision of the future — one where AI enhances, rather than eliminates, traditional systems. According to him, the next phase of AI development will involve intelligent agents that operate software tools on behalf of humans.
“I think the markets got it wrong,” Huang reiterated, explaining that instead of humans using AI as just another tool, AI itself will become the tool user. “That’s the reason why we also say agents are tool users.”
He emphasized that established platforms such as SAP and ServiceNow continue to serve critical functions across industries and are unlikely to disappear. These systems exist, he noted, “for a fundamentally good reason.” Rather than replacing them, AI agents will integrate with such software to complete tasks more efficiently and return results in a way that humans can easily interpret.
Huang believes the efficiency and robustness of enterprise-grade software cannot simply be replicated overnight by standalone AI systems. “In the end, we need the tools to finish their work and put the information back in a way that we can understand,” he said.
This isn’t the first time the Nvidia chief has dismissed fears about AI dismantling the software industry. Earlier this month, he described the idea of AI fully replacing software companies as the “most illogical thing in the world, and time will prove itself.”
His comments come at a time when Nvidia is riding a strong wave of financial growth, fueled by surging demand for AI infrastructure. The company reported a 73 percent year-on-year jump in fourth-quarter FY25 revenue, reaching $68.13 billion. For the full fiscal year, Nvidia posted annual revenue of $215.9 billion.
Looking ahead, Nvidia expects to generate $78 billion in revenue in the first quarter of FY26, underscoring the continued expansion of AI-driven computing demand. As the world’s most valuable publicly traded company, with a market capitalisation of $4.8 trillion, Nvidia remains central to the global AI ecosystem.
While markets may be reacting nervously to rapid AI innovation, Huang’s message is clear: AI agents are poised to work alongside enterprise software — not replace it.
