No doubt you’ve heard that generative AI is being seen as having a major impact on software-as-a-service (SaaS) companies and their customers, even potentially destroying that business model in the not-too-distant future. We sure have, for some time actually, with our ear so close to the ground in Silicon Valley, where the majority of SaaS companies are headquartered or have major operations. (Not to speak of the major AI companies!
What are some noted industry observers saying about this topic? To provide an overview, we did a little research to find recent articles from credible experts and institutions that give us all some perspective on what could be a major industry shakeup. Here’s a rundown of what we think are the best viewpoints:
- Harvard Business Review (May 2025): How GenAI Could Disrupt SaaS — argues that AI automation erodes SaaS feature-based value and forces workflow ownership.
- Bain & Company (Sep 2025): Will Agentic AI Disrupt SaaS? — presents five disruption scenarios; warns that AI agents may cannibalize SaaS revenue.
- AlixPartners (May 2025): Farewell, SaaS: AI Is the Future of Enterprise Software — bold claim that traditional SaaS models will die; urges complete reinvention as AI-first platforms.
- McKinsey (Jun 2024): Navigating the Generative AI Disruption in Software — maps how GenAI shifts value pools and redefines software categories.
- Digital Information World (Apr 2025): AI Disrupts SaaS Growth — notes slowdown in SaaS firm performance as AI commoditizes core workflows.
What’s your take? Are you in a large or midsized company affected by this change? Are you renewing software contracts you now have in place… or not? Are you locked in for some years yet?
If you’re a senior exec who’d like to get our perspective on AI and your workflows, please reach out. It all starts with an email to hi@timmarongroup.com.
