{"id":527985,"date":"2026-03-17T02:48:16","date_gmt":"2026-03-17T02:48:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/527985\/"},"modified":"2026-03-17T02:48:16","modified_gmt":"2026-03-17T02:48:16","slug":"ai-is-moving-so-quickly-companies-must-change-40-of-what-they-are-doing-every-year","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/527985\/","title":{"rendered":"AI is moving so quickly, companies must change 40% of what they are doing every year"},"content":{"rendered":"\n

Okta (OKTA<\/a>) co-founder and CEO Todd McKinnon<\/a> is serving up the cold, hard truth on adapting to the world of AI: Not adapting likely means extinction for companies.<\/p>\n

“In a normal time, when technology is maybe moving at a normal pace, you might think every year you want to change 20% of what you’re doing. We’ve really amped that up. You need to change probably 40% or more of what you’re doing. That could be a process. That could be how you think about markets and opportunities in the past and how you go after new things,” McKinnon said on Yahoo Finance’s Opening Bid<\/a> (video above).<\/p>\n

Tech investors are grappling with what some on Wall Street are calling the \u201cSaaS-pocalypse.\u201d<\/p>\n

Loosely defined, this reflects the major pullback in the stock prices of software companies such as Salesforce (CRM<\/a>) and ServiceNow (NOW<\/a>) because of seemingly daily innovations out of model builders Anthropic (ANTH.PVT<\/a>) and OpenAI (OPAI.PVT<\/a>). The prevailing view is that software companies will be rendered obsolete in under three years.<\/p>\n

Companies from Block (XYZ<\/a>) to Meta (META<\/a>) to Amazon (AMZN<\/a>) have announced massive layoffs in the last six months.<\/p>\n

But McKinnon said humans still need to be a part of the equation.<\/p>\n

“The vast majority of agentic systems still have a human in the loop. It’s all about balancing what the agentic systems can do and, more importantly, how the agentic systems can interact with multiple systems,” he said.<\/p>\n

Okta appears to be benefiting from a step up in corporate spending on security protection for AI agents. The fast pace of AI development could expose businesses to new cybersecurity risks.<\/p>\n

The company’s latest earnings report came in better than Wall Street expected across the board. Guidance was also upbeat. Shares are only down 10% year to date, relatively less severe than other software stocks caught up in the vortex of the SaaSpocolypse.<\/p>\n

“We believe Okta has a significant opportunity as it attempts to build out a complete identity platform (AM\/IGA\/PAM\/CIAM). Identity has increased in importance in a WFA\/Zero Trust\/AI world, and we believe Okta could be among the largest beneficiaries,” Jefferies analyst Joseph Gallo said in a note.<\/p>\n

Brian Sozzi<\/a> is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi<\/a>, Instagram<\/a>, and LinkedIn<\/a>. Tips on stories? Email brian.sozzi@yahoofinance.com.<\/p>\n

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