"Vibe coding" platforms, which allow users to create apps from natural language, pose a direct threat to the B2B SaaS market. For simple workflows, it is becoming faster for a team to build its own personalized app than to navigate the sales, procurement, and integration process for an existing SaaS product.

A new trend sees AI-native companies leveraging their own AI-assisted developers ('vibe coders') to create internal software that replaces their subscriptions to commercial SaaS products. This represents a significant threat to the traditional SaaS business model, as companies opt to build rather than buy simple tools.

Companies are now rejecting expensive SaaS contracts because their internal teams can build equivalent custom solutions in days using AI coding tools. This trend signals a fundamental threat to the traditional SaaS business model, as the 'build vs. buy' calculation has dramatically shifted.

Users are leveraging AI agents to build their own bespoke software, stripping away unused features from SaaS giants like Notion. This trend toward hyper-personalization threatens the one-size-fits-all SaaS model as users create cheaper, more effective personal tools.

For decades, buying generalized SaaS was more efficient than building custom software. AI coding agents reverse this. Now, companies can build hyper-specific, more effective tools internally for less cost than a bloated SaaS subscription, because they only need to solve their unique problem.

Turing's CEO claims SaaS is dead for two reasons. First, powerful foundation models drastically lower the cost of building custom software internally. Second, existing SaaS products are built for human interaction via GUIs, not for AI agents that will increasingly use APIs and tool-calling functions directly.

Enterprises are empowering non-technical employees to build bespoke internal tools with AI, replacing expensive SaaS products. This saves hundreds of thousands of dollars and creates solutions perfectly tailored to specific workflows, freeing them from the constraints of third-party roadmaps.

In the future, it will be easier for businesses to build their own custom software (e.g., Salesforce) through prompting than to buy and configure an off-the-shelf solution. This shift towards "liquid software" will fundamentally challenge the one-size-fits-all SaaS model, especially for companies that currently rely on implementation partners.

AI may drastically lower the cost of software engineering, threatening the dominant SaaS model by enabling companies to affordably build bespoke in-house software, mirroring the current market dynamics in China.