Summary
Artificial Intelligence (AI) is changing the software-as-a-service (SaaS) industry, mainly by improving behind-the-scenes processes. While many expected flashy new AI features, the real changes are in how the software is built and maintained, which is important but not obvious to users.
Key Facts
- AI is transforming the SaaS industry mainly in its architecture and internal processes, which are not immediately visible to users.
- SaaS growth historically involved moving users to cloud services or creating new software categories.
- AI is causing changes by improving productivity, such as reducing the time to develop and test software.
- Customers want AI features included in their software but are unwilling to pay more for them.
- SaaS companies focus on using AI to cut costs and improve productivity rather than immediately adding visible new features.
- One major area of change is the modernization of old software systems, using AI to help update outdated code.
- Financial services, like banks, are using AI to modernize their old systems written in older programming languages like COBOL and Fortran.
- AI's impact on SaaS systems is significant at the system architecture level, altering how the software is structured.
