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AI Coding Tools Glossary

Build-vs-buy shift

Organisations choosing to build internal software with agentic coding tools instead of buying SaaS products.

McKinsey's 2026 State of AI survey found 32% of organisations had decided against buying at least one software product because they could build it with agentic coding tools — nearly 50% among AI high performers. Combined with Cursor reaching $2B ARR and 36M new GitHub developers in a year, it marks the demand-side effect of coding agents on the software market.

Source: The state of AI in 2026 — McKinsey & Company

See the numbers behind this term: AI Coding Tools Statistics 2026.