AI lowered the cost of building software. Enterprise governance hasn’t caught up

AI lowered the cost of building software. Enterprise governance hasn’t caught up

AI Lowered the Cost of Building Software. Enterprise Governance Hasn’t Caught Up

The software development landscape has undergone a significant shift in recent years, driven by advancements in AI-assisted development and the maturation of enterprise app-building platforms. According to Retool's 2026 Build vs. Buy Shift Report, the cost to code a piece of software has dropped to zero, making it possible for anyone to build their own software. However, enterprise and governance models have yet to catch up with this change.

Background & Context

For decades, the conventional wisdom was that buying software was cheaper, faster, and safer for most use cases, while building custom software was reserved for companies with large engineering teams, deep pockets, and unique problems that no vendor could address. However, the proliferation of AI-assisted development platforms has democratized software development, making it possible for non-technical teams to build custom software quickly and affordably. This shift has significant implications for the way companies approach software development and procurement.

Impact on Swiss SMEs & Finance

The shift towards custom-built software has significant implications for Swiss SMEs and the finance industry as a whole. With the cost of building software dropping by an order of magnitude, companies are reevaluating their software procurement strategies. Retool's report found that 35% of teams have already replaced at least one SaaS tool with a custom build, and 78% plan to build more custom tooling in 2026. This trend is likely to continue, as companies seek to optimize their software solutions to meet their unique needs and workflows. For Swiss SMEs, this shift presents both opportunities and challenges. On the one hand, custom-built software can provide a competitive edge and improve operational efficiency. On the other hand, it requires significant investment in talent and resources, which can be a challenge for smaller companies.

What to Watch

As the shift towards custom-built software continues, companies will need to adapt their governance models and procurement strategies to keep pace. This includes investing in AI-assisted development platforms, building in-house talent, and developing new governance frameworks to manage custom software development. Companies that fail to adapt risk being left behind, while those that succeed will be well-positioned to take advantage of the opportunities presented by this shift.

Source

Original Article: AI lowered the cost of building software. Enterprise governance hasn’t caught up

Published: April 16, 2026

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a licensed financial advisor before making investment decisions.