Don't just sprinkle AI features onto your existing product ('AI at the edge'). Transformative companies rethink workflows and shrink their old codebase, making the LLM a core part of the solution. This is about re-architecting the solution from the ground up, not just enhancing it.

Faced with an "AI mandate," many companies try to force-fit AI onto their current offerings, leading to failure. The correct first step is a fundamental assessment: is this problem even a good candidate for AI, or does the entire product need to be reimagined from the ground up?

Competing in the AI era requires a fundamental cultural shift towards experimentation and scientific rigor. According to Intercom's CEO, older companies can't just decide to build an AI feature; they need a complete operational reset to match the speed and learning cycles of AI-native disruptors.

AI isn't a technology to be applied to existing processes. It's a foundational layer, like an operating system, that fundamentally reshapes how businesses create value, make decisions, and operate. This perspective forces a complete rethink of strategy, not just an upgrade.

Companies can either augment existing processes with AI for incremental efficiency (e.g., co-pilots) or completely redesign workflows. While augmentation is common, the most transformative value and disruptive business models will emerge from a clean-sheet redesign of how work is done.

For incumbent software companies, surviving the AI era requires more than superficial changes. They must aggressively reimagine their core product with AI—not just add chatbots—and overhaul back-end operations to match the efficiency of AI-native firms. It's a fundamental "adapt or die" moment.

In the age of AI, 10-15 year old SaaS companies face an existential crisis. To stay relevant, they must be willing to make radical changes to culture and product, even if it threatens existing revenue. The alternative is becoming a legacy player as nimbler startups capture the market.

Incremental change is insufficient for the AI transition. To find the true extent of what needs to change, leaders must be willing to go 'too far.' This means dismantling established teams, processes, and roadmaps entirely, rather than iterating, to rebuild them from scratch for the new reality.

To succeed in the AI era, SaaS companies cannot just add AI features. They must undergo a 'brutal' transformation, changing everything from their org chart and GTM strategy to their core metrics and pricing model. This is a non-negotiable, foundational shift.