The Great AI Shift: Services As Software

I came across a very good article that describes the emerging phenomenon that some have termed Services-as-Software. For decades, businesses have structured their operations around human-driven services – coders developing applications, analysts interpreting data, consultants optimizing workflows. Software has long played a supporting role, but the core work remained in human hands. That paradigm is shifting. Here is a summary of the article.

Artificial intelligence (AI) is transforming the very nature of services. What once required teams of specialists is increasingly being handled by AI-powered systems capable of executing tasks autonomously. This transformation isn’t just about automation – it’s about redefining how businesses consume and deliver services. The emerging model, as mentioned, is often called Services as Software, and it marks a profound departure from the past: software is no longer a tool for human workers; in many cases, it is the worker.

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The Innovation Vortex: How Emerging Tech Will Reshape Business Models Across Industries

The rise of generative AI is sparking discussions about its potential impact on various industries, with SaaS being a prime example. The traditional per-seat subscription model, a cornerstone of many SaaS businesses, might be vulnerable as AI automates tasks and potentially reduces the need for human users. Here’s a breakdown of the conversation:

Challenge: Generative AI’s ability to automate tasks could lead to fewer human employees needing SaaS applications, impacting per-seat subscription revenue.
Nuance: The impact might not be a complete disruption. While some user seats might decrease, AI could also create new functionalities and workflows requiring additional subscriptions.
For your blog post, consider this summary:

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