👾 SaaS Is Dead? Not Quite—But It’s Changing Forever

Few statements grab attention in the enterprise tech world like “SaaS is dead.” But as Bhaskar Roy, Chief of AI Products & Solutions at Workato, argues, the reality is more nuanced. SaaS isn’t disappearing—it’s being transformed at its core.

In a recent conversation with Forward Future, Roy laid out a compelling case for how AI-driven agents are fundamentally altering how businesses interact with software.

For the past two decades, SaaS has been a combination of a graphical user interface, a database, and business logic. This framework has driven digital transformation, but AI is rewriting the rules. Instead of static interfaces, intelligent AI agents are handling everything from business logic to workflow orchestration.

So, is SaaS really dying? Not exactly—but its role is shifting toward becoming a system of record rather than a primary interface.

The SaaS Evolution: From Dominance to Sprawl

By 2023, SaaS had decisively become the dominant form of software deployment, enabling organizations to move faster and be more agile. Initially, companies embraced SaaS due to benefits such as reduced infrastructure costs, ease of scalability, and straightforward maintenance. Industry pioneers like Salesforce demonstrated the immense potential of cloud-based software, paving the way for widespread adoption.

However, rapid adoption led to SaaS sprawl, with businesses averaging around 130 specialized applications by 2022, up from just 80 two years prior. Larger enterprises now commonly juggle several hundred SaaS tools. This fragmented ecosystem created significant management challenges, resulting in disjointed processes, inconsistent data management, and overwhelmed users navigating dozens of disconnected interfaces daily. The initial promise of streamlined digital transformation now posed new complexities demanding innovative solutions.

How AI Agents Are Reshaping Enterprise Software

Imagine a chief technology officer in 2005, thrilled to replace clunky on-premise systems with a handful of nimble SaaS apps. Fast forward to today: that enterprise isn’t using just a handful of cloud tools, but literally hundreds. Without a conductor, this digital ensemble can quickly devolve into chaos, creating inefficiencies, errors, and delays. Enter AI-driven orchestration, the emerging “maestro” coordinating and automating services, turning digital cacophony into harmony.

Roy argues that the traditional SaaS stack is increasingly becoming obsolete due to three key shifts:

1. AI agents can now handle business logic. Instead of relying on static, rule-based automation, AI agents are dynamically making decisions and taking actions in real time.

2. SaaS applications are evolving into data repositories. The real value in enterprise software is shifting from UI-driven workflows to AI-powered orchestration layers.

3. Users no longer need structured interfaces. Instead of navigating SaaS dashboards, users can simply interact with AI agents, which execute workflows on their behalf.

With these shifts, the role of AI orchestration layers becomes critical.

The Role of AI Orchestration Layers

A key insight driving this transition is that AI agents are not just replacing SaaS applications—they are replacing the rigid workflows that tie them together.

“Orchestration layers are becoming the backbone of enterprise automation. AI agents can now collaborate across systems in ways that weren’t possible before.”

Traditional SaaS platforms require users to:

1. Log in

2. Click through structured interfaces

3. Manually trigger workflows

But with AI-powered orchestration, agents can directly interact with enterprise data, trigger actions, and collaborate across systems autonomously. For example:

Sales and Marketing: AI orchestrators autonomously identify targeted customer segments, craft personalized outreach, manage email campaigns, and instantly alert sales teams of critical customer engagements. Roy highlights practical scenarios, like AI evaluating sales call transcripts to instantly determine lead quality, creating personalized follow-ups, and significantly enhancing customer relationships.

HR Onboarding: Automating tasks like account creation, personalized welcome communications, document workflows, training schedules, and equipment provisioning, substantially accelerating the onboarding cycle.

Customer Support: AI agents interpret customer issues, proactively troubleshoot problems, escalate complex issues, and dynamically update custom

With these intelligent, context-aware AI systems, businesses no longer need structured UI-based workflows. Instead, users interact naturally with software through conversation, automation, and AI-driven recommendations.

The Transition: What Happens to Traditional SaaS?

For enterprises heavily invested in SaaS, what does this shift mean? According to Roy, the transition won’t happen overnight—but early signs are already here. Indicators of SaaS Evolution include:

AI Copilots and Assistants Are Gaining Traction. Tools like Microsoft Copilot, OpenAI’s Operator demo, and Workato’s AI-driven orchestration show that AI is moving beyond simple chatbots into full-fledged operational agents.

Enterprise AI Adoption Is Accelerating. Deloitte predicts that 25% of enterprises using GenAI will deploy AI agents by 2025, growing to 50% by 2027.

SaaS Companies Are Rethinking Their Business Models. The smartest SaaS companies aren’t fighting this shift—they’re embracing it by integrating AI agents into their platforms.

What Happens to Legacy SaaS Providers?

Roy sees two possible futures for traditional SaaS companies: those that integrate AI-driven automation and orchestration will evolve into AI-orchestrated platforms, thriving in a more intelligent and efficient landscape. Meanwhile, those that fail to adapt will be reduced to mere data repositories, serving as system-of-record platforms while AI agents take over the actual work.

What’s Holding AI Agents Back?

Despite the potential, AI-powered SaaS is not without its challenges.

1. Accuracy & Reasoning Limitations. While AI can handle structured tasks well, it still struggles with complex multi-step reasoning. As Roy notes, the current generation of AI agents still needs refinement before they can fully replace traditional software workflows.

2. Security, Governance & Trust. Regulated industries like finance, healthcare, and insurance require human validation to avoid compliance risks. AI-driven automation will need strong guardrails to ensure accuracy, reliability, and ethical decision-making.

3. The ‘Magic Middle’ – Balancing AI & Deterministic Rules. While AI agents excel at inference and orchestration, certain enterprise processes must remain deterministic to ensure reliability and control. Roy describes the “Magic Middle” as the space where AI-driven orchestration enhances—but does not replace—structured business logic. In this balance, AI can suggest actions, such as approving a financial transaction or providing insights for major business decisions, but human oversight remains essential for final approvals and strategic calls. Companies that master this equilibrium will define the next era of enterprise software.

The Future of Enterprise Software: What’s Next?

Looking ahead to 2026 and beyond, Roy predicts that SaaS will transform into “agent-driven orchestration platforms,” where AI proactively executes workflows based on context and intent, reducing the need for users to log into dashboards. The traditional SaaS pricing model will also shift, with companies potentially paying for automation outcomes rather than per-seat licenses. Meanwhile, AI-native startups, built entirely on AI-driven automation, will outpace legacy software vendors, disrupting traditional SaaS incumbents and redefining the competitive landscape.

The key takeaway? The companies that embrace AI-driven orchestration will define the future—those that resist may not survive.

Final Thoughts: The Year AI Reshapes Enterprise Software

2025 is shaping up to be a defining year for AI in enterprise software. Workato and other automation leaders are pushing the boundaries of AI-driven business logic and orchestration.

The real question isn’t whether AI will change SaaS—it’s how quickly companies can adapt before they’re left behind. According to Roy, the shift is clear:

• AI agents will handle workflows.

• SaaS will become a system of record.

• The winners will be those who embrace automation, not resist it.

SaaS has evolved beyond mere software into intelligent automation, orchestration, and AI-powered business execution. While Roy's vision articulates a clear future direction, industry consensus remains divided—some organizations hesitate to embrace AI-driven transformation fully, while others have already declared SaaS obsolete. What remains certain is that companies who strategically adopt these innovations will define enterprise technology's next decade of leadership.