Introduction: Why Software Markets Are in Panic Mode
As one software category after another comes under panic sell-off, many are asking how realistic is this? When I hear this - I get reminded of retailers in '00 asking how real is e-commerce?
E‑Commerce as an Instructive Analogy
E-commerce is a good analogy because it is an instructive example. E-commerce was not "automating" shopping. It was not even home shopping - as QVC etc. were already offering it.
Instead, e‑commerce represented a compelling value proposition:
- Competitive pricing
- High breadth of selection
- Shopping from the comfort of your home
E-commerce and Amazon were first and foremost a COMPELLING VALUE proposition.
The Wrong Frame: AI Is Not Just “Better Automation”
If you view AI as the "better automation" alternative to SaaS companies - you have missed the point and will likely underestimate the scale of upcoming disruption.
AI-first software will offer enterprises an unmatched value proposition - tools that combine:
- Apple’s ease of use
- Microsoft’s seamless integration
- McKinsey’s analytical brilliance
This is not an incremental improvement on existing SaaS; it is a fundamentally different promise to the enterprise.
From Transactions to Decisions: What AI-First Changes
Speed wins business. We all know it. Haste makes waste. We all accept it. Most businesses are caught in between the two paradigms. AI-first software will deliver quality decisions at high speed of execution. Organizational memory will be preserved and be used by AI Agents as first base for all workflows.
Humans in the Loop: Governing Enterprise Decisions
Humans will be in the loop and will be guided to do the one things that AI will not be allowed to do - MAKE DECISIONS for the enterprise. Decisions, once made, will self-execute seamlessly.
A New Category: AI Software vs. SaaS
E-commerce was never an alternative to retail buying - it was its own category. AI software is not an alterntive to SaaS - it will create its own massive and unmatched category. Even the best retailers made a weak transition to e-commerce. Let's see if SaaS companies can transition better. The writing is on the wall. Wall Street is betting with dollars.
Experience Decision Intelligence at AgenticPM
We invite you to experience the early stages of decision intelligence and AI-first software at AgenticPM. Watch it here
