McKinsey survey finds nearly one-third of organizations are choosing internal development over buying certain software products or features.
The growing capabilities of artificial intelligence coding agents are beginning to influence how companies make software investment decisions. According to McKinsey’s 2026 State of AI survey, nearly 32% of respondents said their organizations decided against purchasing at least one software product or feature because they could build it internally using agentic coding tools.
The findings point to a broader shift in enterprise technology strategy. Instead of automatically purchasing specialized software for every business requirement, some organizations are assessing whether AI-assisted development can produce a customized alternative at reasonable cost.
Agentic coding changes the build-versus-buy equation.
Unlike conventional coding assistants that primarily suggest snippets or complete sections of code, agentic coding tools can handle broader software-development tasks with greater autonomy. They can help create applications, modify existing code, test features, and troubleshoot problems based on user instructions.
This is making internal software development more accessible to companies that previously relied heavily on external vendors for niche applications or workflow tools. For businesses, the decision is not simply about replacing software subscriptions. Internal development can also let organizations tailor applications more closely to their processes and avoid paying for features they don’t need.
SaaS companies face a changing market.
The trend could have implications for the software-as-a-service (SaaS) industry, particularly vendors whose products address relatively straightforward or highly customized business requirements.
If companies can use AI coding agents to develop internal alternatives, software providers may face greater pressure to demonstrate clear value through functionality, integration, security and ongoing support. However, building software internally also carries responsibilities. Organizations must consider cybersecurity, maintenance, data protection, reliability and the availability of skilled employees before deciding that an in-house application is a practical substitute for commercial software.
McKinsey’s broader 2026 research suggests that organizations are increasingly deploying agentic AI while still working to translate individual productivity gains into measurable business results. The 32% figure therefore signals more than growing interest in AI-assisted programming. It indicates that AI coding agents are beginning to affect enterprise software procurement and development strategies.
