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How can these conflicting narratives be reconciled? If SaaS is truly on its last legs globally, what
does this mean for regions like MENA that are just beginning to build their software ecosystems?
And perhaps most intriguingly, could the rise of AI in software development present an
unprecedented opportunity for these emerging tech hubs?
Why AI Might Kill SaaS – And Why It Won't
While cyclical factors like budget shifts from "traditional software" to AI pilots, longer sales
cycles, and high interest rates explain part of the cooling SaaS sentiment, two fundamental
arguments make a more existential case against the future of SaaS.
The AI Swiss Army Knife: One Tool to Rule Them All?
The first argument suggests that AI will become so proficient at a wide array of tasks that it will
effectively replace specialized SaaS applications. This isn't just about raw capabilities. The
intuitive, conversational interface of AI Systems could make traditional SaaS feel clunky and
tedious by comparison.
However, the software industry has long alternated between specialized solutions and broader,
bundled offerings for good reason. While all-encompassing AI systems have their merits,
specialized offerings will retain distinct advantages:
