I respect Satya, but “AI agents will replace SaaS” might have been the worst prediction of 2024.

SaaS is far more than just a “database with business logic.”

It’s also about:

• Relationships, community, and trust

• Security and compliance

• Sales (especially enterprise), marketing, and customer support

The software itself is just a small part.

Also, many SaaS products evolve into platforms with thriving ecosystems. Think Substack, Salesforce, Google Workspace, or AWS.

AI agents can’t replicate that at scale.

And I see no reason for the entire business logic to move to the AI tier.

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A more realistic scenario:

• Simple SaaS tools, especially B2C, might struggle. For example, testimonial.to. Not because they will be replaced by AI agents, but because agents might soon be able to generate those simple apps.

• AI agents will enhance and extend other SaaS products.

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Do you agree? Disagree?

Let me know in the comments.

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P.S. Satya Nadella (Microsoft CEO) on AI agents replacing SaaS: youtu.be/a_RjOhCkhvQ