Today's average tech stack is more crowded than ever, and businesses are starting to feel the weight. As organizations adopt tool after tool to keep up with digital transformation, many are realizing their software ecosystems are inefficient, costly, and riddled with redundancies.

To understand how companies are confronting these challenges, we surveyed over 570 IT leaders across departments and industries. Their responses reveal how AI is reshaping software decisions, what categories are most at risk of bloat, and why regular audits are becoming essential to long-term efficiency.

Key Takeaways

IT leaders rely on approximately 11 distinct software tools or platforms, but say they could eliminate 34% of their stack without noticeable impact on daily operations.
On average, IT leaders say 27% of traditional software tools in their stack have already been replaced by AI-powered alternatives.
42% of IT leaders say Q4 of 2025 is their next planned audit to revise their stack.
IT leaders expect 56% of their software stack to be AI-powered by 2030.

Where Bloat Happens Most

The majority of IT leaders agree that their tech stacks are larger than they need to be. From overlapping features to shadow tools, software inefficiency has become a common operational concern.

According to IT leaders, their businesses rely on an average of 11 distinct software tools and platforms. However, more than one-third of software tools (34%) go unused or underutilized in a typical workweek. This gap between adoption and actual usage reveals a critical inefficiency in how stacks are built and maintained.

Another 42% of respondents reported having tools with overlapping or duplicative functionality, which is a clear sign that many teams aren't fully optimizing their investments. When asked which parts of their stack they would fully turn over to AI, 21% pointed to data analytics and business intelligence tools.

Cloud storage and file management emerged as the most bloated category, with 17% identifying it as the area most in need of consolidation. Despite these inefficiencies, 55% of IT leaders still expressed confidence that every tool in their stack was currently necessary.

Shadow IT remains an ongoing challenge. Twenty-seven percent said their organization relies on software that hasn't been authorized or vetted by their IT team, which introduces additional complexity and risk. When it comes to software stack oversight, 34% of respondents said their company conducts a full software audit once a year, while fewer do so biannually (24%) or quarterly (23%).

"A lot of companies think more tools mean more productivity, but that's rarely the case. The truth is, when your stack gets too crowded, people spend more time managing software than actually using it to create value," shared Adnan Malik, CEO at Software Finder.

The Push for Smarter Stacks

Audits and AI are central to how IT leaders plan to streamline their software environments in the future.

IT leaders anticipated replacing or revising 27% of their current stack in the near future, on average. With 42% planning their next full-stack audit in Q4 of 2025, the urgency to right-size software ecosystems is clearly building.

"Smart companies are starting to see audits as a growth tool, not just a maintenance task. When you identify what’s overlapping or outdated, you free up resources for innovation instead of waste," shared Shane Elahi, COO at Software Finder.

As for what initiates a software audit, security risks topped the list, with 32% of respondents citing it as the most common trigger. This suggests that stack decisions are increasingly driven by risk mitigation as much as by cost or functionality.

Many leaders also feel constrained by vendor lock-in. More than 1 in 3 (38%) admitted they're stuck using software that no longer aligns with their goals or workflows. This frustration highlights the growing appeal of AI-powered alternatives, which could offer greater flexibility and long-term cost savings.

On average, IT leaders reported that AI-powered alternatives have already replaced 27% of the traditional software tools in their stack. More than half of IT leaders (56%) expect their software stack to be AI-powered by 2030.

Trimming the Fat Without Losing Function

Modern software stacks are undergoing a transformation. IT leaders are no longer focused solely on adding capabilities. They're now prioritizing strategic cuts, automation, and integration. AI tools are becoming more prominent, and regular audits are gaining traction as a means to control costs and complexity. As we approach the end of the year, now is the time for organizations to take a hard look at their stack and ask: What's truly essential?

"It's not about having fewer tools, it's about having the right ones," says Marium Lodhi, CMO at Software Finder. "Businesses that align their software stack with real goals—not just trends—will see stronger performance and better ROI long term."

Methodology

We surveyed 573 IT leaders, comprising 38% who were directors or managers of IT, 33% who were directors or managers of operations, and 28% who were CIOs, CTOs, or VPs of IT. Among the respondents, 23% came from enterprise employers with 1,000+ employees, 21% from large companies (250–999 employees), 29% from medium companies (50–249 employees), 17% from small companies (10–49 employees), and 10% from micro companies (1–9 employees).

About Software Finder

Software Finder helps businesses discover and compare the right software solutions to streamline operations and drive growth. Whether you're consolidating your stack or building a new one from scratch, our expert guides and software directories are here to help.

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The State of the Software Stack in 2025

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