# OpenAI's new product rattles software stocks Presence launch triggers sector-wide selloff amid AI competition fears. - **Source:** [Business Insider](https://www.businessinsider.com) - **Published:** 2026-07-23 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/f8dabe72-a411-48f6-8045-0842ad19c1ab ## OpenAI's market impact The announcement of OpenAI's new enterprise product Presence triggered sharp declines in software stocks. Shares of companies like Workday, Atlassian, and HubSpot dropped over 10%. Analysts interpret this as AI threatening traditional software markets. ## Presence capabilities The new product enables companies to manage AI assistants with data security and policy controls. Offering automation for customer service, sales, and internal processes, the tool accelerates OpenAI's entry into the SaaS market, alarming established software giants. ## Market reaction Following the Presence announcement, the IGV software index fell 3%. TD Cowen analysts note investors' fears of 'AI eating software' were reignited. A similar effect occurred in early October after OpenAI's blog posts about internal AI tools. ## Most affected sectors Analysts identify customer service and sales automation companies as most at risk. Enterprise software leaders like Salesforce and Okta also lost 4-8% value. Companies slow in AI integration are expected to face continued pressure. ## Broader sector context Software stocks were already struggling amid oil price surges, bond yields, and Big Tech earnings. OpenAI's move deepened the negative sentiment. Consolidation is anticipated, especially among mid-sized SaaS providers. ## Long-term implications It's now clear AI solutions will transform traditional software markets. AI labs like OpenAI entering the SaaS space directly could fundamentally alter competition dynamics. Investors now evaluate companies based on their AI adaptation speed. ## Sources covering this story - https://www.businessinsider.com/openai-release-turns-a-bad-week-ugly-for-software-stocks-2026-7 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._