Generative AI: Disrupting the SaaS Landscape

A foundational shift is underway in enterprise software, driven by generative AI. AlixPartners' new study reveals that the rise of AI agents is squeezing over 100 mid-market software companies. These firms are caught between AI-native entrants replicating applications at a fraction of the cost and tech giants investing heavily in AI. Many mid-sized enterprise software companies face existential threats within the next 24 months. AI is evolving from an assistant to the application itself, handling complex tasks and potentially rendering traditional SaaS architectures obsolete. This forces software companies to adopt outcome-based pricing, streamline product lines, and embrace M&A. Speed, relevance, and efficiency will become core competitive advantages.