Redpoint CIO Survey: 45% of AI Budgets Replacing Existing Software, Only 3% Expect AI to Lead to More Vendors, 54% Actively Consolidating

SaaStr·high signal

Redpoint's survey of 141 CIOs managing $765B in aggregate capex reveals that 45% of AI budgets are directly replacing existing software spend — not additive budget. Only 3% expect AI adoption to increase their vendor count, while 54% are actively pursuing consolidation. 58% said AI feature additions are the primary driver of software budget growth. Redpoint estimates that Task Agents alone expand the addressable market from ~$0.5T (US software) to $1.2T, but the value is shifting from incumbent SaaS to agent platforms.