The problem with SaaS in 2026 is funding availability, not the current state of AI agents, which can't yet completely replace existing solutions with in-house versions. There's no way that I can reasonably ensure consistency today from multiple agents answering subtly different questions and building the infra as they go - but that's not why SaaS is in trouble. SaaS is in trouble because many funding sources think there's a chance AI will be able to do vastly more in 3 to 5 years, which is the time horizon they use to expect a payback.
Can you build a SaaS product in 2026 and get some customers, delivering them significant ROI? Yes.
Can you expect to fund the rollout of that product in 2026, using established sources of startup funding? Maybe, depends on how much you need, but it's way tougher.
If some distant future is consistent, on-demand, and constructed applications that perfectly solve the immediate requirement, then people/orgs selling software are fundamentally decimated. That future is possible but not ensured. What is clear is that the barrier to entry for a new player into the market of a pure SaaS company is dissolving right now. That's only going to get worse, and that is what drives the availability of funding.
I agree with the sentiment and funding for pure SaaS is hard. I think SaaS will evolve and embrace AI. Maybe a new paradigm of agents as a service. I think it still make sense to buy a tool to solve common problems instead of building everything in house
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The problem with SaaS in 2026 is funding availability, not the current state of AI agents, which can't yet completely replace existing solutions with in-house versions. There's no way that I can reasonably ensure consistency today from multiple agents answering subtly different questions and building the infra as they go - but that's not why SaaS is in trouble. SaaS is in trouble because many funding sources think there's a chance AI will be able to do vastly more in 3 to 5 years, which is the time horizon they use to expect a payback.
Can you build a SaaS product in 2026 and get some customers, delivering them significant ROI? Yes.
Can you expect to fund the rollout of that product in 2026, using established sources of startup funding? Maybe, depends on how much you need, but it's way tougher.
If some distant future is consistent, on-demand, and constructed applications that perfectly solve the immediate requirement, then people/orgs selling software are fundamentally decimated. That future is possible but not ensured. What is clear is that the barrier to entry for a new player into the market of a pure SaaS company is dissolving right now. That's only going to get worse, and that is what drives the availability of funding.
I agree with the sentiment and funding for pure SaaS is hard. I think SaaS will evolve and embrace AI. Maybe a new paradigm of agents as a service. I think it still make sense to buy a tool to solve common problems instead of building everything in house