AI agents aren’t the end of SaaS – they’re driving its next phase of growth

For the past year, one idea has dominated conversations about enterprise technology: AI agents will replace Software as a Service (SaaS). It’s a compelling case on paper. If AI can reason across tools, write code, execute workflows, and interact with systems through APIs, then traditional SaaS applications start to look like unnecessary middlemen.

Seats become less relevant. User interfaces matter less. Software becomes cheaper to build. Custom internal tools become easier to create.

In that reality, much of SaaS gets pushed down into infrastructure, while value shifts to models, agents, and orchestration layers. This reaction is being driven by several parallel shifts.

Software is becoming cheaper and faster to build, AI agents are becoming better at navigating tools and executing work across systems, and the economics of agentic execution are bringing new attention to cost and latency, or time to serve.

The market is not wrong to think this...

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