Artificial intelligence is changing the economics of software, making it easier for businesses to recreate certain SaaS tools internally and putting pressure on established subscription models. The emerging challenge for software companies is no longer just building a useful product. It is proving why customers should continue paying for it.

In an article published on October 23, 2026, Visionary Marketing interviewed retail and SaaS expert Mike Hadjadj about the ideas behind his book SaaSpocalypse. His argument is not that software companies will disappear, but that AI is changing how customers evaluate software prices, functionality and long-term value.

AI Is Making Custom Software More Accessible

AI-powered development tools are lowering the barriers to building software. Businesses can use these tools to create applications, reproduce existing features and customise workflows without following traditional development timelines.

The article cites French retailer La Redoute, which reportedly rebuilt a visual product discovery tool in 48 hours using AI. The original tool had cost the company €360,000 annually.

The example illustrates a potential challenge for SaaS providers: when customers can recreate a product's core functionality at a substantially lower cost, they may question whether an existing subscription remains worthwhile.

However, recreating a tool's visible features does not necessarily reproduce its reliability, security, integrations, support or ability to handle complex business requirements.

Why SaaS Companies Face Growing Price Pressure

For years, software companies have charged customers for access to features, workflows and technical capabilities that would have been expensive to develop independently.

AI is changing that calculation. Businesses with suitable technical expertise can now experiment with internal alternatives, particularly for tools that are relatively simple, non-essential or poorly suited to their needs.

The Visionary Marketing article also describes retailers negotiating lower Salesforce spending by reducing unused modules and rebuilding selected functions themselves.

These examples suggest that customers may increasingly challenge software contracts when they believe they are paying for unnecessary features or capabilities that can be replicated more cheaply.

For SaaS providers, the risk is not necessarily immediate customer abandonment. It may begin with reduced contract values, tougher renewal negotiations and greater pressure to demonstrate measurable returns.

Three Factors That Can Protect Software Companies

Hadjadj identifies three factors that can help software businesses defend their value: urgency, measurable value and stickiness.

1. Urgency

Products that address pressing business needs, regulatory requirements or competitive challenges are harder for customers to postpone or ignore.

2. Measurable value

Customers need to understand the practical benefit of a product. Clear improvements in revenue, productivity, cost savings or operational performance strengthen the case for continued investment.

3. Stickiness

A product becomes harder to replace when it is deeply integrated into business processes, supported by valuable external data or connected to networks and services that competitors cannot easily reproduce.

For example, a basic appointment-booking application may be relatively straightforward to recreate. A platform that also manages an established network of approved repair providers is more difficult to replicate because its value extends beyond software functionality.

These factors offer a useful framework for SaaS companies assessing their exposure to AI-driven competition.

Even Established Software Giants Must Prove Their Value

The pressure is not limited to small software startups. Larger vendors may also face customers who want to pay only for the features they use while developing or sourcing the remaining capabilities elsewhere.

Enterprise platforms often provide more than individual features. They can manage business records, permissions, integrations, compliance requirements and interconnected workflows. These capabilities can create meaningful barriers to replacement.

Nevertheless, customers may still seek lower prices if they believe the vendor's broader package no longer justifies its cost.

For established providers, the challenge is to distinguish essential capabilities from features that customers can replace, while continuing to improve the overall customer experience.

AI Is Shifting Value Beyond the Code

One of the central arguments in the article is that software's value increasingly lies in understanding customer needs, modelling business processes and designing effective solutions, rather than in writing code alone.

AI can accelerate implementation, but businesses still need to define what they want to build, understand how it fits their operations and determine whether the finished product solves the right problem.

This creates opportunities for vendors that offer specialised industry knowledge, trusted data, reliable infrastructure, strong integrations and ongoing expertise.

It also raises questions for companies whose competitive advantage depends primarily on features that can now be reproduced with widely available AI tools.

What SaaS Companies Should Do Next

To respond to these changes, software providers should reassess how they communicate and deliver value.

  • Talk to customers about renewals: Understand which features customers use, which they consider essential and why they continue paying.

  • Demonstrate measurable outcomes: Connect product capabilities to business results rather than relying solely on feature lists.

  • Strengthen differentiation: Invest in specialised data, integrations, industry expertise and services that are difficult to reproduce.

  • Review pricing models: Consider whether pricing reflects actual usage, delivered value and customer needs.

  • Use AI to improve the product: Apply automation to enhance customer outcomes rather than treating AI only as a development shortcut.

These steps can help vendors build stronger customer relationships while preparing for more demanding purchasing decisions.

The SaaS Industry Is Facing a Value Reset, Not Necessarily Extinction

The SaaSpocalypse debate highlights a significant change in the relationship between software companies and their customers. AI is reducing the cost of building certain applications and making customers more willing to challenge traditional subscription prices.

But software businesses that provide essential infrastructure, trusted data, specialised workflows and measurable outcomes may remain highly valuable.

The long-term winners are likely to be companies that understand what customers truly pay for and continually strengthen that value. In an AI-driven market, writing software may become easier, but delivering a dependable solution that businesses trust could remain a meaningful competitive advantage.