Users can now prompt an AI to build a custom version of a SaaS tool, tailored to their exact needs. This marks a shift towards personal, disposable software, which increases software's abundance while simultaneously eroding the moats of traditional SaaS businesses.

AI is fundamentally changing SaaS interaction. Instead of users clicking buttons to take action, AI will perform the tasks. The UI will then transform into a surface where users primarily review AI-driven outcomes, get insights, and make corrections, often interacting via conversational language.

The future of computing involves devices with minimal software, where an AI model generates a custom user interface on demand to solve a specific problem. This 'Software 3.0' paradigm abstracts away the need for discrete applications like spreadsheets or finance tools, turning complex multi-step workflows into single-prompt actions.

AI tools enable users to create bespoke applications tailored to their needs. This shift towards personalized software challenges the one-size-fits-all SaaS model, potentially rendering many subscription products obsolete and causing market underperformance, as seen in the Morgan Stanley SAS index.

AI is becoming the new UI, allowing users to generate bespoke interfaces for specific workflows on the fly. This fundamentally threatens the core value proposition of many SaaS companies, which is essentially selling a complex UX built on a database. The entire ecosystem will need to adapt.

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.

The cloud era created a fragmented landscape of single-purpose SaaS tools, leading to enterprise fatigue. AI enables unified platforms to perform these specialized tasks, creating a massive consolidation wave and disrupting the niche application market.

AI will fundamentally change user interfaces. Instead of designers pre-building UIs, AI will generate the necessary "forms and lists" on the fly based on a user's natural language request. This means for the first time, the user, not the developer, will be the one creating the interface.

Instead of integrating third-party SaaS tools for functions like observability, developers can now prompt code-generating AIs to build these features directly into their applications. This trend makes the traditional dev tool market less relevant, as custom-built solutions become faster to implement than adopting external platforms.