The article argues that artificial intelligence (AI) is fundamentally transforming Software as a Service (SaaS) — not just by adding smart features, but by reshaping the business model itself. Traditionally, SaaS products were sold as subscription-based tools that provided defined software capabilities to users. But with AI now embedded across almost every software stack, these tools are increasingly expected to do work autonomously, blurring the line between a purchased service and a standard utility that businesses simply consume as part of everyday operations. This reflects a broader trend where AI becomes as ubiquitous and essential as electricity or cloud computing.
One key shift the author highlights is how AI lowers barriers to developing highly customized software. Instead of buying generic SaaS platforms and then configuring them manually — a long and costly process — companies can now leverage AI to generate tailored workflows, automate core tasks, and build bespoke applications quickly. This reduces the distinctiveness of traditional SaaS products and makes bespoke solutions more accessible, potentially undermining the old subscription-per-seat pricing model in favor of utility-style usage or outcome-based billing.
The article also notes that, because AI capabilities are becoming a baseline expectation, marketing claims like “AI-powered” are losing their impact. Just as “cloud-based” or “mobile-friendly” became table stakes in previous technology cycles, AI is now assumed in most software offerings. What matters increasingly isn’t whether a product has AI, but how effectively it uses intelligence to deliver real outcomes — such as drastically speeding up workflows or reducing manual effort — rather than simply automating simple tasks.
Finally, the piece suggests that this utility-like evolution of SaaS will change how companies compete. Rather than building standalone products with static feature sets, future winners will likely operate AI-orchestration platforms that integrate multiple intelligent services and charge based on actual value delivered. This could lead to a landscape where AI-driven services are embedded so deeply into business processes that they resemble essential infrastructure, shifting the economics of software from licensing and seats to continuous, utility-style consumption.
