New Delhi, Aug. 30 -- Organizations are increasingly using agentic coding tools to build software in-house in lieu of purchasing it, according to a McKinsey report titled "The state of AI in 2026".

Nearly a third of respondents (32 per cent) report that their organisations have decided against buying one or more software products or features because they could be built internally with agentic coding tools.

The trend spans several sectors, with technology companies leading the shift away from external software procurement. Across industries, 41 per cent of respondents in the technology sector report forgoing software purchases in favour of internal development using AI coding tools.

This is followed closely by healthcare payers and prov...