'AI is becoming THE line item': OpenAI and Anthropic are big winners in the doubling of AI spend as legacy SaaS face an existential crisis

• AI-native vendors capture the fastest growth, dominating enterprise software budgets
• OpenAI and Anthropic are the top beneficiaries of rising AI spend
• Traditional SaaS tools are losing relevance as AI adoption accelerates

Enterprise software spending is undergoing a structural shift as artificial intelligence moves beyond limited trials into core operational budgets, new research has confirmed.

Over the past year, decision-making has moved away from whether AI tools are worth funding toward which vendors should receive increasing allocations, reflecting a broader change in procurement priorities, where AI is no longer treated as an add-on but as the central line item shaping software budgets.

Tropic’s analysis of more than $18 billion in managed spend found overall software expenditure is rising sharply, with mid-market and enterprise organizations increasing spend by nearly 58% year-over-year.

AI shifts from optional spend to dominant budget line

Within that growth, AI-native categories are expanding much faster than traditional software, indicating a clear reallocation of budgets rather than uniform expansion.

The redistribution of spend is concentrated among a small group of vendors, with OpenAI and Anthropic emerging as major beneficiaries.

Anthropic recorded growth of more than 428%, while tools such as Cursor saw increases exceeding 600%, reflecting rapid adoption across engineering teams.

At the same time, OpenAI continues to capture substantial spend despite slower contract growth, reflecting a shift where a limited number of vendors are absorbing a growing share of budgets, reinforcing their role in daily workflows and infrastructure.

The figures indicate that AI tools are no longer experimental purchases, as procurement teams are receiving repeated requests for the same platforms across departments.

As AI spending increases, traditional SaaS providers are seeing slower growth and, in some cases, a declining share of overall budgets, as for smaller companies, spending on primarily SaaS tools has already declined by around 8%, while AI-native and hybrid tools continue to expand.

This divergence suggests organizations are reducing reliance on legacy systems that lack meaningful AI integration.

At the same time, vendors are introducing higher pricing tied to AI capabilities, with increases ranging from 20% to 37%, well above historical norms, creating additional pressure on budgets, as companies must justify higher costs while also reassessing existing software commitments.

The data shows a shift where AI is not just another category within software spending but the defining factor shaping allocation decisions.

While overall budgets are increasing, the concentration of spend among a few AI vendors and the relative decline of traditional SaaS indicate a transition that may alter how enterprise software markets operate.

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