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AI and the New SaaS Buyer: Myths and Realities of the Impact of AI

AI and the New SaaS Buyer: Myths and Realities of the Impact of AI

Summary

The article discusses how artificial intelligence (AI) is changing the software as a service (SaaS) industry. While AI is expected to transform how software is created and delivered, its immediate effects are more visible in improving software development and modernizing old systems rather than in boosting SaaS revenue or customer acquisition.

Key Facts

  • AI is mainly boosting productivity in software engineering, not yet driving new SaaS revenue.
  • Senior engineers benefit more from AI tools, leading to faster updates and better product quality.
  • Buyers expect AI features in software but are not willing to pay extra for them.
  • AI is helping modernize outdated software, offering clear financial benefits.
  • The most noticeable use of AI in SaaS is automation, even though it may increase costs over time.
  • SaaS vendors are cautious with AI investments, often keeping projects in early trial stages to understand their full potential.

Source Information