Would you like AI with that?

2026-07-09 · Source: ITAM Review · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Software Licensing & Procurement · Depth: Intermediate, short

Summary

In mid-2026, major software vendors like Microsoft, Adobe, and ServiceNow are implementing a common strategy involving forced AI upgrades and significant price increases. Microsoft 365 list prices rose 9-33% from July 1, 2026, compounded by the removal of Enterprise Agreement volume-discount tiers from November 1, 2025, leading to an effective uplift nearing 20%. Adobe restructured Creative Cloud, resulting in effective increases up to 27%, while ServiceNow integrated its Now Assist AI into all ITSM tiers. Buyers report facing 20% or more increases, aggressive negotiations, and pressure to adopt unwanted AI features, which they perceive as "useless" and leading to "software bloat." This vendor behavior is attributed to pressure to fund AI infrastructure, maintain investor relevance, and address underperforming stock.

Key takeaway

For IT Asset Managers and Procurement Professionals navigating upcoming software renewals, you must proactively challenge vendor pressure for forced AI upgrades and unwarranted price spikes. Evaluate your actual user needs to right-size entitlements and consolidate existing footprints, rather than accepting bundled "free" AI features that offer no value. Actively seek alternative suppliers who offer AI as an optional value-add, thereby avoiding unnecessary software bloat and ensuring your investments align with genuine organizational requirements.

Key insights

Major software vendors are forcing AI integration and price hikes due to financial pressures, leading to buyer dissatisfaction and "software bloat".

Principles

• Vendors are consolidating AI features into core product tiers.
• Financial pressures drive aggressive pricing and forced AI adoption.
• Bundling unwanted features creates software bloat and reduces perceived value.

In practice

• Right-size software entitlements to user need.
• Explore third-party alternatives for cost reduction.
• Conduct deep analysis for product rationalization and cost savings.

Topics

• Software Licensing
• AI Bundling
• Vendor Pressure
• IT Asset Management
• Microsoft 365 Pricing
• Procurement Strategy

Best for: CTO, VP of Engineering/Data, Executive, Consultant, IT Professional, Director of AI/ML

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Editorial summary, takeaway, and curation by AIssential. Original article published by ITAM Review.