A soft species is typically large, polarizable and has a low charge (magnitude). The silver cation is not highly charged (this supports softness) however, it is anomalously small due to high nuclear charge and poor shielding by the d-orbitals. Consequently, shouldn't it also be less polarizable?
It does have a tendency to form bonds that are significantly covalent in nature which backs up the assertion that $\ce{Ag^+}$ is soft; however, I don't understand why.