32% of companies skipped software purchases to build with AI agents instead
The build vs. buy debate just got a new variable. According to a McKinsey research report, agentic coding tools are starting to pull real budget away from software vendors.
The Core Finding
Nearly one-third of respondents (32%) said their organisation had decided against purchasing at least one software product or feature because they could build the functionality internally using agentic coding tools. The shift was most pronounced in technology and healthcare, followed by professional services and energy and materials.
Enterprise Adoption Is Accelerating
40% of respondents at organisations with more than $1 billion in annual revenue reported scaling AI agents in at least one function. That’s up from 27% a year earlier. Smaller organisations, however, stayed flat at 22%.
AI high performers are moving at a different pace entirely. They are twice as likely as other organisations to report scaling software coding agents, and 2.7 times more likely to scale other agentic AI. Nearly half of high performers had already forgone software purchases in favour of building internally, compared with 31% of other respondents.
The Cost Side Is Getting Attention Too
Around one in five organisations said AI-related operating costs, including token costs, had constrained their use of the technology. That friction hasn’t killed appetite. 60% of respondents expect their organisations to increase AI investment over the next year.
McKinsey noted that leading organisations are becoming more deliberate about where to buy, where to build, and where to develop internal capabilities. As coding agents get more capable, the traditional vendor relationship faces a structural pressure it hasn’t seen before.
The Operator Takeaway
If you’re a solopreneur or small team already using coding agents, this data confirms what you may already feel: the cost of building a custom internal tool is falling fast. The tradeoff isn’t just about saving money on SaaS. It’s about owning the exact workflow you need instead of adapting to someone else’s product roadmap.
I’m founder of BizStack at Cagri Sarigoz LLC and a passionate advocate for entrepreneurs.
With over 14 years in tech, marketing, and AI, including my role as Head of SEO at CitizenShipper and co-founder of TaleBot at Intale AI, I’m dedicated to sharing genuine, useful product insights and tips.
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