Bank of America: Application software spending increases by 13.2% annually, proxy AI will not commercialize software According to Tide Research, on October 20, 2026, Bank of America's research report stated that Gartner predicts a compound annual growth rate of 13.2% for application software spending from 2025 to 2030, which will decrease to 10.9% after AI cross functional erosion, with a gap of 2.3 percentage points; From 2026 to 2030, a cumulative expenditure of approximately $116 billion will shift towards cross functional proxy applications; AI revenue currently accounts for approximately 1% to 11% of the total revenue of software companies, with a mid-term target of 5% to 30%. Bank of America believes that agentic AI will not turn software into a commodity, and the moat will shift from interfaces and standardized implementation to trusted data, industry knowledge, AI control surfaces, and partner networks. Report a buy rating with a target price of 226 euros to SAP, a buy rating with a target price of 300 dollars to Autodesk, a buy rating with a target price of 320 dollars to Twilio, and a underperforming rating with a target price of 15 dollars to UiPath.