I was going to buy these ASX tech stocks. Now, I'm not so sure

When the facts change, so should our buying…

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Back in January, I wrote a piece that named two ASX tech stocks as the top of my buy list if the share market experienced a crash in 2026.

Those two ASX tech stocks were TechnologyOne Ltd (ASX: TNE) and Pro Medicus Ltd (ASX: PME). These companies are two of Australia's finest. Both have consistently delivered for shareholders over recent years and boast enviable stock price trajectories.

At the time, I outlined my view that if these companies descended to a price point that indicated significant potential value, then I would be tempted to load the boat.

However, I must confess that my faith has been shaken.

As I've already touched on, both of these companies are proven winners. TechnologyOne prides itself on its enterprise software products, which have proven wildly popular with governments and businesses in Australia and overseas.

Pro Medicus is also in the software space. Its medical imaging services are in high demand worldwide.

Both companies continue to report happy numbers.

For example, in February, Pro Medicus delivered a 29.7% surge in underlying profits for the six months to 31 December 2025 to $90.7 million.

A financial expert or broker looks worried as he checks out a graph showing market volatility.

Image source: Getty Images

What's got me sour on these two ASX tech stocks?

So why the loss of faith? Well, it's to do with artificial intelligence (AI). Yes, we've known about the potential upsides, as well as the potential disruption, of AI technology for a while now. That said, it has recently become clearer that enterprise software stocks face a particularly high level of disruptive risk from AI.

Now, I am no AI expert. But I do see the potential for disruption here. AI tools are becoming better and better at solving enterprise problems that (expensive) software currently handles. Anecdotally, I have already heard several stories of AI rendering business software subscriptions redundant.

There's every chance that TechnologyOne and Pro Medicus will be able to stay ahead of the curve and evolve and adapt to the threats of AI. But I am not certain of that, not enough to bet my dollars on it anyway.

Warren Buffett once said that "I don't look to jump over seven-foot bars, I look around for one-foot bars that I can step over". These two ASX tech stocks are looking increasingly tall in this modern age of AI, at least in my eyes. As such, I'll probably stick to shorter stocks to step over, at least for now.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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