The software paradigm is shifting beyond SaaS. The new era is 'software as a worker,' where autonomous 'agentic' solutions are embedded in workflows to perform tasks, driving value beyond human-led productivity enhancements and creating new economic advantages.

The fundamental model of AI use is changing. It's moving from 'assisted' AI, which helps humans with their tasks, to 'agentic' AI, where autonomous systems perform tasks. This paradigm shift requires new methods for adoption, management, and measuring success, moving from 'seats' to 'tokens'.

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.

Early AI adoption focused on saving time. The new wave, driven by agentic systems, derives its primary value from enabling completely new functions and significantly increasing throughput, representing a move from efficiency to opportunity-focused ROI.

AI doesn't kill all software; it bifurcates the market. Companies with strong moats like distribution, proprietary data, and enterprise lock-in will thrive by integrating AI. However, companies whose only advantage was their software code will be wiped out as AI makes the code itself a commodity. The moat is no longer the software.

Simply adding a generative AI co-pilot is now table stakes for SaaS companies. The founder argues the next evolution is 'agentic AI' — systems that don't just provide insights but autonomously perform tasks and make decisions for the user, like qualifying and actioning a sales lead.

The future of software isn't just AI-powered features. It's a fundamental shift from tools that assist humans to autonomous agents that perform tasks. Human roles will evolve from *doing* the work to *orchestrating* thousands of these agents.

The current market leaves no room for mediocrity. SaaS companies are either at the forefront of AI, delivering jaw-dropping value and capturing new budget, or they are being displaced. Hiding behind long-term contracts is a temporary solution, as there is no longer a middle ground.

The idea that AI will kill SaaS is flawed. Instead, SaaS is evolving to integrate "agentic" capabilities. This creates a hybrid model where humans and AI agents collaborate within optimized workflows, delivering more value than either could alone. This fusion expands the market rather than destroying it.