Let’s take an example for better understanding. A company deploys Microsoft Dynamics Business Central to automate it Finance processes. Their finance and accounting team will be responsible for keying in the business data, configure the workflows and start using the app. Productivity achieved! Now this company may hire the accounting services from the Business Central consulting firm who deployed the SaaS app. This will open another revenue opportunity for the consulting firm and how about if the accountant who serves the customer is an AI agent. That is an entry into the massive trillions of dollar global service opportunity for a company who only sells SaaS apps.

Revolutionizing the Business Model: Agentic AI and the Trillion-Dollar Opportunity for Software Companies

With the modernization of AI, particularly Agentic AI software companies will now have better access to this trillion of dollar (Gartner) opportunity. Another very interesting example of how this new AI based model will work comes from Sales and Marketing. A sales agent typically performs activities like sourcing contacts, researching prospects, sharing information, scheduling calls, writing highly personalized emails etc. A company that provides a CRM application to help and automate such activities of a sales rep, will benefit from the new model by charging per qualified opportunity or per deal closed that their CRM provides rather than per seat or per user subscription. There are a number of other examples in engineering, security, recruiting, operations, IT services, BPO etc.

Can AI Replace the SaaS Model?

It is true that modern LLM models are capable enough to read and interpret the structured and unstructured content, generate output, make complex decisions and hyper automate the mundane tasks performed by human agents. This is beyond what a SaaS app offers to the businesses. However, the question is will the new AI based model completely replace the SaaS apps? The answer to this is “No”. While companies are striving to automate the business processes and AI is playing a crucial role in it, the SaaS model will still be there as long as there is dependency on human agents, that will remain. Human agents will still configure the workflows, do the spot checks and investigate specific cases.

The Future of Service Industry with AI at the Helm

It is undeniable that Software As Autonomous Service is a revolutionary change, with AI leading the way. This advancement indicates a future where services are not merely provided as software but are continuously adapting and improving in tandem with us.

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