Bernstein analysts have developed a framework to assess AI disruption risks for software companies, highlighting two critical factors. First, 'automatability' gauges whether AI can automate core business value; low automatability means value relies on proprietary data and complex workflows, making replacement difficult, while high automatability suggests AI can easily replicate tasks. Second, 'defensibility' measures the difficulty of displacing a product post-adoption, considering switching costs, ecosystem strength, and brand lock-in.

Companies like SAP and DAST are identified as having favorable risk profiles due to high defensibility. Against a backdrop of software sector pressure from AI advancements, Bernstein's analysis provides investors with a tool to identify companies better positioned to withstand AI disruption.