Every major platform shift in technology has followed the same pattern. Predictions of obsolescence give way to waves of reinvention. The internet didn’t kill retail; it created e-commerce. Mobile didn’t kill the web; it expanded it. SMS didn’t kill email; both evolved to thrive.
We’re seeing the same debate play out today with AI and SaaS. Some argue that agentic AI will make SaaS platforms irrelevant—that models will simply absorb enterprise functions. But history tells us otherwise. AI won’t replace SaaS. It will re-architect it, and in doing so, create a new era of value for enterprises.
Why SaaS isn’t going away
The core of enterprise software has always been the system of record—ERP, CRM, CLM, HRIS, and other platforms that capture structured data and create a single source of truth. These systems are not optional; they are the backbone of business operations.
What AI changes is not the need for these systems, but how they are used. Instead of static repositories of data, systems of record are evolving into intelligent decisioning and execution layers. They will still hold and safeguard the data enterprises rely on, but increasingly, they will also orchestrate actions, automate workflows, and surface domain-specific insights.
This evolution strengthens SaaS rather than weakens it. The moat around successful SaaS businesses doesn’t come from generic software features—it comes from deep integration into vertical-specific processes, proprietary data, and analytics that can’t be easily replicated.
The next moat: Domain depth + AI
Generic AI is already commoditizing. Access to large models is no longer the differentiator. The real advantage lies in embedding AI into the workflows, ontologies, and data models that define an industry.
That’s why the future of SaaS will be defined by domain-specific AI applications that build on top of trusted systems of record. The combination of context, compliance, and control will be what makes enterprise AI truly transformative—and defensible.
Pulsora’s view: AI in sustainability
At Pulsora, we see this transformation playing out in the sustainability domain. Enterprises are under immense pressure to measure, report, and improve their sustainability performance—but raw data alone doesn’t solve the problem.
Companies need platforms that:
- Codify reporting frameworks and regulatory requirements
- Integrate industry-specific metrics and supplier data
- Provide analytics and AI-driven insights on top
This is where SaaS shows its staying power. Sustainability can’t be managed by disconnected spreadsheets or generic AI prompts. It requires a system of record built around sustainability data and workflows, enhanced by AI to move from compliance to action.
We’re enabling capabilities such as:
- AI-powered decarbonization recommendations to help organizations identify the most effective pathways to reduce emissions.
- Carbon anomaly detection to flag data irregularities and uncover operational inefficiencies.
- Risk analysis to anticipate where companies may be exposed to regulatory, financial, or reputational risks.
- Agentic AI benchmarking to compare performance against peers and suppliers, enabling more informed decision-making across the value chain.
With these capabilities, sustainability shifts from being a backward-looking reporting exercise to a forward-looking driver of enterprise performance.
The future of SaaS + AI
The winners in this new era will be those who combine AI with domain expertise to build defensible, high-value operating infrastructure. SaaS companies that understand the intricacies of their verticals—and have access to the proprietary data that powers them—are positioned to create the most meaningful AI applications.
Rather than killing SaaS, AI will accelerate its evolution. Systems of record are not going away; they are being re-architected into platforms that not only record what happened, but also guide what should happen next.
In other words: AI isn’t the end of SaaS. It’s SaaS leveling up.
