Name: How Agentic AI Is Reshaping Business Models | Jack Hidary on CNBC
Uploaded: 2026-02-27T21:38:50.000Z
Duration: 6 min 52 s
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Software stocks are bouncing back today after Anthropic announced several partnerships with names like Intuit Salesforce and Thompson Reuters to boost its enterprise business.

This after a Citrini research report on AI's potential to devastate white collar workforce and consumer economy spooked parts of the market yesterday.

Let's bring in Jack Hillary, CEO of AI and quantum firm Sandbox iq.

How do you look at this brutal software sell off, Jack, and

whether it's, whether it's overdone or if the core business here is actually threatening, threatened and potentially threatened in a serious way.

Well, I think the Trinity Research report is actually very helpful Sarah, in terms of raising the issues.

And there will no doubt be a big impact of coding AI, the kind of AI that Claude gives from anthropic Gemini OpenAI, there's many, many versions of it out there will make it easier for companies certainly to adapt and do the customization of these large enterprise software platforms.

many companies like IBM have had legacy divisions whose only job is to either customize enterprise software and, or convert cobol, the old language that we used to use on mainframes, into new code.

And that's why IBM dropped yesterday pretty precipitously as well.

So there will be an absolute impact on coding and the customization of software at the same time.

Sarah, I think the report underplays the other part of AI which is where it creates new products, new value.

Every time we have a tech revolution we actually create more jobs and more value and increase the gdp.

Okay, I'm glad you brought up IBM because I dug into this one a little bit.

I spoke to Rob Thomas over there, he's the Chief Commercial officer, head of software, he's one of the top guys over there and he put out a blog post on this and basically what he explained to me, because I'm no COBOL expert of course, is that IBM itself has been doing this so called COBOL monetization for several years now.

You know, where they're able to translate that into Java and more modern languages for coding and if anything it's only helped their mainframe computer business, otherwise they wouldn't have done it.

That was his point, is that this is not necessarily news on that front and not disruptive.

And the other analogy he gave me, which I, which really spoke to me was it's you can vibe code, iOS, but

that doesn't necessarily make the iPhone less valuable because of the integration of that hardware and software and just the Complexity around that and everything that goes into it, the camera, not just software.

And that's not going to necessarily affect the iPhone.

There's certainly millions of lines of Cobalt code yet to be converted to.

IBM will have a role in that, but now a number of companies will also do it themselves.

So in general it is a pressure downward on pricing for that service of COBOL conversion, sure, but

it is a downward pressure and I think the market right now is very spooked.

They sell first, ask questions later in this area of enterprise services.

3 weeks ago on this channel we were talking about is a bubble and, and

now it turns out AI is the destroyer and the rest of the economy is the bubble.

So I just want to note that it's a fun switcheroo that we're seeing.

Well, you can't write either you're investing all this money in data centers and the chips that go into them as a result of all the things you're going to get on one hand or that's not going to work and then you don't have to worry about the software companies getting disintermediated.

Well, I do want to come back to you just on the overall view that you've expressed and many have.

We're optimistic about how this technology is going to impact our society.

Always pointing out that in past technological revolutions more jobs have been created, but

we have never seen a technology that can replicate and then exceed human intelligence.

And so I really do come back to the idea that none of us have any real idea, do we, of what's going to happen.

None of us know the full crystal ball, David.

But number one, agents, as we talked about last time, will absolutely rise up and will displace and put downward pressure on intermediaries, doordash, other kinds of services that today gain huge rent fees, tolls essentially on connecting people will have downward pressure because agentic AI will, will absolutely rise up.

What that means is that new jobs will be created for those who can create agentic platforms.

And so it's never that you can keep the old jobs and you get the new jobs.

You've got to actually have new skills, new platforms.

The success of Open Claw is Another testament to agentic rising up.

So my advice to companies, legacy companies, is it is not doom.

But unless you retool immediately and into the new tool set, you're going to be part of the past, there's no doubt about that.

It's going to require a new business model in some ways as well.

One that's not based on per seat license fees, for example, but

somehow based on something else, I guess in terms of overall cost saved.

I don't know what it's going to be, Jack.

Well, it's going to be value based pricing.

And then the bigger picture, David and Sarah here is really about the global competitiveness as well.

Right now in the US we're sitting at a $31 trillion economy where the largest GDP by nominal terms and Q3 2025, just a quarter ago, we had 4.4% annualized growth in that quarter.

What we're seeing coming up this year, 2026, 2027, we could be seeing GDP growth rates that we've really never seen before, except for the anomalous year of 21 where we had that 5.1% rebound year from the devastation of 2020 with COVID But, but

putting that one aside, I think we're actually going to see GDP growth percentage wise.

But here in the US that's going to be a real shocker for the global system.

And it also brings us to the US China competitiveness in terms of how do we look at vis a vis the air coming out of China.

Well, we're going to have to contemplate that future more with you next time, Jack.

Appreciate the perspective as always, especially on the big sell off yesterday.