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AI’s SaaS Shakeup Will Be Measured, Not Immediate

Buyers want AI features without higher prices, steering vendors toward efficiency gains rather than short‑term revenue.

Overview

  • Speaking at a Newsweek webinar on December 4, Ness Digital Engineering CEO Ranjit Tinaikar said AI is transforming SaaS, but real value will arrive with a phase lag.
  • Incumbent vendors face costly, risky architectural refactors to integrate AI, while AI‑native entrants can ship faster but struggle to win risk‑averse large buyers.
  • The early payoff is productivity, as customers expect AI capabilities to be included without premium pricing and vendors take a long‑term view on monetization.
  • Macroeconomic uncertainty and inflationary pressures on CIO budgets are prompting cautious, targeted AI investments rather than sweeping overhauls.
  • Tinaikar advised SaaS firms to spend smartly, maintain go‑to‑market investment, buy or build new products as needed, and address leadership and culture as critical execution risks.