Nvidia Chief Executive Jensen Huang dismissed fears that artificial intelligence will replace software and related tools, calling the idea “illogical,” following sharp sell-offs in global software stocks on Tuesday.
Last week, fears of an AI-driven disruption in the data and professional services sector grew, and it widened this Wednesday, hitting software stocks in India, Japan and China.
Speaking at an artificial intelligence conference in San Francisco hosted by Cisco Systems, Huang said that concerns that AI will make software companies less relevant are misplaced and that AI will continue to rely on existing software rather than rebuilding basic tools from scratch.
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“There is this notion that tools in the software industry are in decline and will be replaced by AI… It is the most illogical thing in the world, and time will prove it,” Huang said.
“If you were a human or a robot, general artificial robotics, would you use tools or reinvent tools? The answer, obviously, is to use tools… That’s why the latest advances in AI are about using tools, because tools are designed to be explicit.”
Shares of Indian IT exporters fell 6.3% on Wednesday, tracking losses in global software stocks. Technology services company Infosys was among the biggest losers, down 7.3%.
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China’s CSI Software Services Index also fell 3%, while in Hong Kong, shares of software company Kingdee International Software Group plunged more than 13%.
In Japan, recruitment agency Recruit Holdings and Nomura Research fell 9% and 8% respectively.
