TMT Daily "TOTVS: Little evidence of ERP displacement in SMBs; TV: Insta..."

Research evidence excerpt

TMT Daily "TOTVS: Little evidence of ERP displacement in SMBs; TV: Insta..."

Global Research

23 June 2026ab

TMT Daily Equities

Emerging MarketsTOTVS: Little evidence of ERP displacement in

SMBs; TV: Instagram to start competing with Telecommunications

streaming? Leonardo Olmos,AnalystCFA

leonardo.olmos@ubs.com

+55-11-9658 7533

TOTVS: Little evidence of ERP displacement in SMBs Gustavo Farias

Associate Analyst

What happened: Today we double click on UBS's SMB AI adoption survey - highlighted gustavo.farias@ubs.com

in a recent report from US Software analyst Taylor McGinnis - and frame +55-11-2767 6154

implications for TOTVS. The survey is based on responses from 450 IT decision-

makers (senior manager or above) at businesses with 50-999 employees and revenue

of US$ 250mn or less across the US, UK, Australia, and Canada. Key takeaways were:

Front-office leads AI use cases, with copilots ahead of agents. Customer

service was the top AI use case, followed by sales and marketing and

productivity/work management. Copilot-related solutions lead, while AI

agent traction remains early stage. Deployment is early across the board, with

no use case cited by more than 10% of participants as in production. Relative

to front-office, AI adoption in back-office functions (e.g., finance and HR)

appears more nascent.

SMB vendors more exposed to new entrants, but clients still prefer

incumbents. While large enterprises are more likely to build in-house AI

solutions, this is less viable for SMBs given cost and complexity. Hence, SMB-

focused vendors appear more exposed to emerging competition from AI-native

start-ups, given lower switching costs and greater pricing sensitivity. However,

Survey data suggests SMBs favor embedded AI solutions from incumbents.