Agentic AI and the so-called “SaaSpocalypse”: threat or turning point?

The recent market turmoil around software and SaaS companies is often framed as an existential threat. New agentic AI tools, announced by players such as OpenAI and Anthropic, are said to make traditional software companies obsolete. Yet anyone who looks beyond stock prices sees a different story unfolding: not an apocalypse, but a sharp correction after years of hesitation and delayed change within the SaaS industry.

Agentic AI as a catalyst, not a replacement

Agentic AI is fundamentally different from earlier waves of artificial intelligence. It is no longer about “assistants” that merely respond to prompts, but about systems that can plan steps autonomously, combine multiple tools, and execute tasks with minimal human intervention. That makes the technology visibly more powerful than traditional automation. Still, this does not mean it suddenly replaces complete enterprise software stacks. What it does expose is how many SaaS products had effectively stopped evolving.

The uncomfortable truth: SaaS could already do this

Many large SaaS companies have, for years, possessed rich datasets, deeply embedded domain logic, clearly defined workflows, and extensive API ecosystems. What was missing was courage: the courage to rethink licensing models, to automate features that replace “billable users,” and to simplify internal processes instead of continuously adding layers of complexity.

Agentic AI makes this painfully visible: what an AI startup can build in six months, some SaaS players could have built internally a decade ago.

What are we actually seeing happen now?

Rather than reacting purely defensively, many SaaS companies are doing the opposite: they are accelerating internally. Not only to “keep up,” but because the market now clearly rewards simplicity, speed, and meaningful automation.

Example 1: CRM and HR software

Where CRM systems long revolved around manual data entry and static dashboards, we now see automated lead qualification, AI-driven follow-ups, and agents that prepare cases for human decision-makers. Not because the technology is brand new, but because competitive pressure has finally become strong enough.

Example 2: Legal and compliance software

Legal software platforms are increasingly integrating contract analysis, clause comparison, and risk detection themselves. These are exactly the capabilities for which agentic tools are often described as a “threat.” The difference is that established vendors connect them to audit trails, version control, accountability, and compliance logic. In that context, human oversight is not optional — it is essential.

Example 3: Development and DevOps

The same pattern appears in software development. AI-assisted code generation existed before, but only with renewed pressure from modern tooling did organizations dare to redesign internal development flows, automate CI/CD pipelines, and structurally reduce technical debt. Agentic AI accelerates this shift: from “more features” to “less friction.”

The paradox: copying and accelerating at the same time

What investors often overlook is the paradox at play. Yes, AI-native teams are copying SaaS functionality. At the same time, SaaS companies are being forced to make faster decisions, reduce complexity, and redesign products from the user’s perspective. In that sense, agentic AI acts as an external stress test — not to destroy SaaS, but to push it toward maturity.

Where do the real risks lie?

The risks are real, but selective. The most vulnerable are SaaS companies that rely on thin UI layers without deep domain knowledge, products that amount to little more than “workflow + form + invoice,” and organizations that sell licenses without taking responsibility for outcomes, quality, and traceability.

These players are not primarily threatened by AI itself, but by the absence of a clear value proposition beyond automation.

Why SaaS is not disappearing

In regulated environments such as finance, legal services, government, and large enterprises, explainability, traceability, accountability, and human sign-off remain critical. This is precisely where established SaaS vendors retain their strength — not despite AI, but in combination with it. The most plausible future is hybrid: SaaS as a reliable, auditable core, with AI agents acting as an intelligent execution layer on top.

Conclusion: not an apocalypse, but a reset

What we are witnessing today is not the end of SaaS. It is the end of comfort SaaS: software that relied too long on inertia, lock-in, and accumulated complexity.

Agentic AI does not replace an entire industry. It forces it to finally do what it could have done years ago: accelerate internally, simplify aggressively, and refocus on real value. The winners will not be the companies that fear AI, but those that use it to fundamentally improve their products.

Opinion and analysis on the impact of agentic AI on the SaaS market. Intended as public-facing context, with a focus on opportunities, risks, and concrete shifts in modern product development.