SKN | Goldman Sachs Sees AI-Driven Upside in Software Sector, Highlights Klaviyo as a High-Growth Opportunity

Key Points

• Goldman Sachs believes artificial intelligence is creating new growth opportunities in software, despite concerns over disruption to traditional SaaS business models.
• The investment bank identifies Klaviyo as one of its top software picks, citing multiple long-term growth drivers and significant upside potential.
• AI-powered customer engagement, product expansion, and international growth are expected to support Klaviyo’s medium-term performance despite recent market volatility.

Goldman Sachs believes the next phase of artificial intelligence could reshape the software industry in ways that create significant opportunities for select companies. While investors have increasingly questioned the future of traditional Software-as-a-Service (SaaS) providers amid the rise of AI agents—a trend some have labeled the “SaaSpocalypse”—the investment bank argues that certain software platforms are well positioned to emerge as long-term winners.

Among its highest-conviction ideas is Klaviyo (NYSE: KVYO), which Goldman Sachs believes could deliver substantial upside as businesses increasingly adopt AI-powered customer engagement and marketing technologies.

AI Is Transforming Customer Experience Software

Goldman Sachs analyst Gabriela Borges believes customer experience software is entering a multi-year transformation driven by artificial intelligence.

Rather than replacing software platforms entirely, AI is creating opportunities for companies that successfully integrate intelligent automation into customer service, marketing, and customer relationship management.

The firm expects businesses with differentiated technology platforms and scalable AI capabilities to benefit from stronger customer demand as organizations seek more personalized and efficient digital engagement.

Goldman Sachs also believes marketing software remains more resilient than many investors currently appreciate because of its deep integration into enterprise infrastructure.

Klaviyo Expands Beyond Traditional CRM

Klaviyo has established itself as a leading provider of customer relationship management software focused on direct-to-consumer businesses and e-commerce merchants.

Its AI-powered platform enables companies to analyze customer behavior, automate marketing campaigns, personalize recommendations, and improve customer engagement through intelligent chatbots and automated service tools.

The company’s AI capabilities extend beyond marketing by supporting customer service functions, allowing businesses to automate responses, access complete customer histories, and seamlessly transfer conversations to human representatives when necessary.

These features continue to strengthen Klaviyo’s competitive position as organizations increasingly prioritize AI-enabled customer experience solutions.

Long-Term Growth Drivers Remain Intact

As of the first quarter of 2026, Klaviyo served more than 196,000 customers while reporting 28% year-over-year revenue growth and quarterly revenue of approximately $358 million.

The company also exceeded analyst expectations with adjusted earnings of $0.22 per share.

Although shares declined following the announcement that Chief Financial Officer Amanda Whalen will step down and management projected slower revenue growth for the remainder of the year, Goldman Sachs believes the market reaction may have been excessive.

The investment bank points to several long-term growth catalysts, including deeper penetration within the Shopify ecosystem, expansion into larger enterprise customers, international market growth, and continued development of AI-driven products and customer service solutions.

What Investors Should Watch

Investors should monitor customer acquisition, recurring revenue growth, AI product adoption, international expansion, leadership transition, and the company’s ability to maintain strong operating margins.

Additional attention should focus on how businesses continue investing in customer engagement technology as artificial intelligence becomes increasingly integrated into enterprise software platforms.

If execution remains strong, Klaviyo could benefit from several years of structural demand driven by AI-powered digital transformation.

Closing Insights

Artificial intelligence is reshaping the software industry by shifting competitive advantages toward platforms that combine automation, customer intelligence, and scalable enterprise infrastructure. As businesses increasingly prioritize personalized digital experiences, software providers capable of embedding AI into core customer engagement workflows may emerge as long-term industry leaders.

Technology investors, software companies, and enterprise leaders exploring AI strategy, digital customer engagement, SaaS innovation, or long-term technology investment opportunities are invited to engage SKN’s senior advisory team for a confidential discussion tailored to today’s rapidly evolving AI-driven software landscape.