February 2026 Summaries

Low-code platforms initially aimed to bridge the gap between business problems and builders, but their simplicity often came at the expense of flexibility, limiting their effectiveness for complex tasks. Recently, a convergence of low-code platforms, AI code generation tools, and agentic automation is reshaping the landscape, offering a broader capability for app development. AppGen, a term coined by Forrester, refers to platforms that use AI to generate complete applications, collapsing traditional development cycles by integrating generative AI's creativity. Retool, an enterprise AppGen platform, focuses on providing professional developers with tools that support multiple development modes, including natural language, visual canvas, and code, while ensuring enterprise-grade governance, data access, and deployment flexibility. This evolution addresses the constraints faced by low-code platforms and AI-only builders, which often lack the necessary infrastructure for secure and scalable enterprise applications. The shift emphasizes the importance of integrating code and governance, allowing more people to build apps without compromising on security or control, thereby accelerating organizational productivity.

In recent years, the dynamics of software development have shifted dramatically, with companies increasingly opting to build custom tools instead of relying on generic SaaS solutions. This trend has been facilitated by advancements in large language models (LLMs) and the popularization of "vibe coding," which allow organizations to rapidly develop tailored software that meets specific needs. A survey of 817 builders revealed that 35% of teams have already replaced at least one SaaS tool with a custom-built solution, and 78% plan to continue this trend by 2026. The rise of shadow IT—where employees create software outside of official IT oversight—highlights the demand for speed and specificity in tool development, although it also introduces risks related to security and governance. Enterprise AppGen platforms like Retool offer a solution by enabling secure, governed development of custom tools that can integrate seamlessly with existing data systems. Despite the enthusiasm for AI-driven development, organizations face challenges in measuring AI's productivity impact, with many lacking proper metrics to assess ROI. The future of enterprise software may lie in balancing the need for rapid, custom development with the necessary infrastructure to manage and secure these innovations effectively.

The tech landscape is undergoing a significant shift as companies increasingly opt for custom-built software solutions instead of traditional SaaS tools, driven by advancements in AI that have reduced the complexity and cost of software development. According to Retool's 2026 Build vs. Buy Report, 35% of surveyed teams have already replaced at least one SaaS tool with a custom solution, and the trend is expected to grow. Common SaaS categories being replaced include workflow automation, internal admin tools, BI dashboards, CRM, form builders, project tracking, and customer support tools. This transition is accelerated by AI's ability to streamline development, the limitations of generic tools as organizations scale, and the rise of shadow IT, where senior managers build tools outside of IT oversight due to speed and customization needs. Retool facilitates this shift by offering a platform that allows teams to quickly develop secure, custom applications connected to live data, thus outperforming generic alternatives and enabling efficient, governed software development at scale.