Software as a Service (SAAS) has been a highly successful business model in the last 20 to 25 years. SAAS has been the dominant model in the industry and has seen highly successful businesses. The rise of cloud computing in the early 2000s enabled this revolution. It ushered a paradigm shift in the way businesses operated and interacted with its customers making SAAS the backbone of Digital Transformation.
We are seeing a similar change currently and this is driven by AI. But unlike the cloud, the evolution of AI seems to be at the speed of light. From merely being a subject of fiction in popular movies to seeing its use in almost every aspect of our digital interactions, AI evolution has been mind bogglingly quick. At the heart of this AI revolution are the AI Agents - language based digital assistants that can do everything a user could do on a SAAS platform, minus all the clicking, toggling, switching and swearing.
SAAS - The business logic layer of yesterday!
At its core, SAAS is an interface layer for the business logic - a set of rules and workflows coded to solve specific problems. But when AI enters this play, it's not just execution but also learning, adapting and performing tasks in a way that goes beyond the rigid frameworks of business logic. This shift threatens to make the SAAS model, as we know it today, obsolete. In the words of Satya Nadela, the CEO of Microsoft, SAAS is essentially cloud databases with a bunch of business logic. The business logic is all going to these agents. These agents are not going to discriminate between what the backend is. They are going to update multiple databases and all the business logic will be in the AI tier. Once the AI tier is where all the business logic is, people will start replacing all the backends.
AI Native Biz Aps - A New Era of Automation
With the business logic capable of being in the AI tier, a new era of automation is unfolding. The logic can be orchestrated by the AI and AI Agents without the need for a middle wear to interact with. Microsoft CEO goes as far as to say, Excel, the most ubiquitous application that the business world depends on, can be replaced by AI agents since an agent can do just all that one can do with Excel without having to enter all that data and work with a million functions that excel has to offer. With literally no specific user training needed, AI adaption is far more easier making it rapidly being adapted in not just functions like CRM, but also in finance and operations. Business leaders are seeing a previously unattainable scope for cost optimisation without having to compromise on deliveries or experience. Businesses are now demanding AI native apps.
Advantages of going AI Native
AI Agents connect directly to raw databases and APIs, interpret unstructured data, and perform actions without human intervention. The key characters include
Autonomy: Agents can perform tasks without requiring user input at every step.
Adaptability: Agents can learn and improve through interactions and feedback
Collaboration: Agents can communicate and collaborate with other AI Agents enabling seamless multi-agent work flows.
Real-time Decision: Agents can eliminate bottleneck since they can analyse data and make instant decisions
Users are increasingly demanding AI capabilities, be it enterprise applications or consumer facing ones.
The AI-First Approach: Essential for Survival
For startups, adopting an AI-first approach isn’t just a competitive advantage; it’s an unavoidable necessity. The user behaviour has also evolved rapidly. People are shifting from traditional Graphic User Interfaces (GUIs) to interacting with conversational AI and intelligent assistants. ChatGPT, Alexa and Siri have set the stage well for users to expect a natural conversational interaction with technology. This shift underscores the startups to think beyond UI/UX design. It is not anymore about building better user interfaces but about creating agents that understand and anticipate user needs. Clinging to SAAS models can risk falling behind as users gravitate to AI driven experiences that need no special training and offer top level personalisation and efficiency over every possible traditional workflow.
Conclusion
As a startup, you cannot afford to ignore AI nor can AI be an afterthought. AI is the new workflow and approaching your idea from an AI perspective is the essence of building the next unicorn. As a startup, you have an unique opportunity to lead this transformation by adapting an AI First approach building intelligent agents that interact directly with data, collaborate with other agents and deliver unparalleled value to users.
Reach us out for free, no-obligation consultation on how to take the AI First approach for your startup. Our AI practitioners will take you step by step through the world of AI implementation and help you get AI ready.
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