will AI make traditional software, such as SaaS, obsolete?

AI is expected to reshape rather than destroy traditional software, such as SaaS [1, 9]. While there are significant concerns that AI agents could reduce the need for expensive software licenses and complex, high-cost integrations [2, 10], many industry observers argue that the "SaaSpocalypse" theory is overstated [4, 6]. Instead of replacing existing systems, AI is driving a shift in value, forcing companies to reprice software around new competitive moats like data, context, and AI-driven capabilities [1, 9]. Currently, large corporations are not ripping out their existing business software; instead, they are building custom applications and pressuring their current vendors to adapt [5]. While AI-native platforms are challenging incumbents with more efficient, API-first offerings [7], traditional software remains essential for handling the "boring" operational tasks that businesses rely on [4].