Summary
The rise of artificial intelligence (AI) is changing the software as a service (SaaS) industry, but the adoption will not happen quickly. While AI-driven companies are emerging, established SaaS companies face challenges in updating their existing systems to integrate AI features effectively.
Key Facts
- AI is transforming the software as a service (SaaS) industry, but adoption will be gradual.
- Dr. Ranjit Tinaikar, CEO of Ness Digital Engineering, explained this during a Newsweek webinar.
- Venture capital investment has heavily favored the SaaS model, with significant growth predicted for the market in 2024 and 2025.
- Half of SaaS growth comes from expanding economies, while the rest from transitioning applications to SaaS.
- Incumbent SaaS companies face challenges in integrating AI due to existing system architectures.
- New AI-native companies are entering the market and can perform tasks efficiently.
- Large companies are cautious about adopting new AI technologies quickly due to reliability concerns.
- Current economic uncertainty makes it difficult for companies to invest in AI for immediate revenue gains.
