Microsoft's CEO says AI agents will make traditional SaaS obsolete.

How true will it be?

At its core, traditional SaaS apps are built around CRUD operations—Create, Read, Update, Delete—on data, with some added business logic. This works for a lot of businesses, but it’s a bit rigid. These apps follow predefined workflows, where humans still interact with the software to manage tasks.

But AI is changing the way we think about software. Nadella’s point is that when business logic moves from static workflows to AI-driven agents, the role of traditional SaaS apps becomes less relevant. AI agents can understand data, learn from it, and make decisions without needing constant human input. This isn’t just automation; it's about intelligence that adapts in real-time.

Now, don't get me wrong, new SaaS models are becoming more automated, with AI and machine learning embedded into their workflows. But Nadella’s statement goes beyond that. He's pointing to a future where AI takes the wheel completely, not just enhancing the user experience, but actively driving business processes.

It's no longer about managing data; it's about letting AI do the thinking and adapting the business logic as needed.

In essence, the future of SaaS might not involve apps at all. It will be more about intelligent agents that understand your business and work autonomously, providing smarter, faster, and more flexible solutions than traditional apps can offer.

We’re witnessing a major shift. The next wave of software will be systems powered by AI that act, learn, and evolve with your business.

Author

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