OpenAI CFO Sarah Friar warns that AI could significantly disrupt the SaaS industry by enabling companies to develop software in-house, challenging traditional SaaS demand and intensifying the buy versus build debate, which could reshape software development and impact existing software stocks.
AI coding tools like Bolt are transforming enterprise software development by lowering barriers for non-traditional developers to build custom applications in-house, challenging the traditional SaaS model and potentially reducing costs and increasing control for companies. This shift is especially impacting areas like HR, revenue operations, and marketing, with companies creating internal tools that previously relied on external SaaS providers. While promising, concerns about maintenance and reliability remain, prompting the development of specialized infrastructure platforms. Overall, AI-assisted development could significantly alter the software landscape, favoring in-house solutions over traditional SaaS offerings.