Opinion | The SaaS Reckoning: Building Apps That Last in the AI Age

This is an opinion article by George Pu, the CEO of SimpleDirect

In a recent appearance on the B2G Podcast, Microsoft CEO Satya Nadella made a statement that should resonate deeply across the software industry: most SaaS applications are merely UI/UX layers over CRUD databases.

CRUD—create, read, update, delete—represents the fundamental operations of a database. Much of what defines today’s SaaS is about layering interfaces and workflows over these basic operations.

That model is becoming obsolete.

The Shift to AI Agents

Apps with defined UIs and rigid workflows are being overtaken by a new paradigm: AI agents.

These agents, being developed by tech giants like Google, Microsoft, Anthropic, and OpenAI, as well as ambitious startups, can interpret user intent, query data directly, and perform actions autonomously—without needing a dedicated interface.

The implications are transformative. Business logic, which has long been hardcoded into workflows and UI layers, is being replaced by dynamic, orchestrated AI interactions.

AI agents can pull data from multiple sources, process it, and take actions—removing the need for the structured workflows and user interfaces that have dominated SaaS for decades.

This means traditional SaaS, with its pre-defined tasks and workflows that aim to "save time and offer convenience," is no longer enough. The future belongs to modular, adaptable systems that empower agents to create and execute logic on the fly.

What’s at Risk?

Not all SaaS will disappear, but many are under threat. Companies that rely heavily on rigid interfaces, narrowly defined tasks, or static workflows are particularly vulnerable. Some examples include:

• Task and Workflow Management: Monday.com, Asana, Workday.
• Customer Support Platforms: Zendesk, Freshdesk.
• Knowledge Tools: Notion, Confluence.

I respect these companies and admire how many of them are already pivoting toward an AI-driven future. However, they highlight key characteristics of SaaS businesses most at risk:

1. UI-Dependent: Tools requiring manual navigation and setup.
2. Task-Specific: Platforms with narrow functionalities (e.g., ticketing).
3. Workflow-Based: Apps built around pre-configured workflows with little adaptability.
4. High Learning Curve: Solutions that require significant onboarding and training.

What Will Survive in the AI Agent Era?

To thrive in this new landscape, SaaS companies must reimagine their value propositions. The AI-agent-first future demands:

1. Modular APIs: Build APIs that allow agents to interact and integrate seamlessly, empowering users to connect multiple tools dynamically.
2. Beyond UI/UX: Offer value that isn’t tied to predefined interfaces. If we remove all the UI of your app and make it accessible using command line tools only, is it still useful?
3. Plug-and-Play AI: Provide tools and capabilities for businesses to leverage AI agents immediately, without heavy configuration or coding.

Legacy platforms like Salesforce, which already have rich databases and robust workflows, are likely to thrive by evolving into data and orchestration hubs.

However, startups face a harsher reality. Adapt or perish will define the next few years, and those who fail to pivot quickly and effectively will be left behind.

How to Navigate the Shift

Here are my thoughts on how startups and SaaS companies can adapt to survive the AI agent revolution:

1. Build Core AI Agent Infrastructure

This strategy is ideal for the big players—AWS, Google Cloud, Microsoft—but less practical for most startups. Core infrastructure, like AI training pipelines or agent orchestration systems, will underpin the AI economy. If you’re a startup, this path likely requires a niche focus and deep domain expertise to succeed.

2. Offer Specialized AI/Database APIs

Startups can thrive by offering tools that help agents seamlessly interact with your app. Ask yourself: if we strip away all our UI layers, does our app still provide value? If the answer is yes, you’re on the right track. Specialized APIs for finance, legal, or other domains can ensure you remain relevant.

3. Own Unique Data or Content

If your app generates or controls exclusive datasets, this can be a key differentiator. Proprietary data is invaluable for training and optimizing AI agents.

4. Double Down on Privacy and Security

As agents handle sensitive data, privacy-first solutions will stand out. Businesses will demand compliance with laws like GDPR and HIPAA, alongside robust protections against data breaches.

5. Specialize in Domain Knowledge

Certain industries, like healthcare, defense, or 2D/3D design (e.g., AutoCAD), require domain-specific expertise that general-purpose agents can’t easily replicate. If you’re deeply entrenched in a specialized niche, you have a strong survival strategy.

6. Become an Agent-Centric Platform

Transition from UI-driven workflows to agent-driven automation. For instance:

• CRM Platforms: Instead of being a tool to manage customer data, evolve into a data orchestration hub where agents autonomously handle customer interactions and integrate with other systems.
• Project Management Tools: Enable agents to retrieve, update, and interact with records dynamically, embedding the results into platforms like ChatGPT, Gemini, or Claude.

Reflections from SimpleDirect

This isn’t just a theoretical shift. At SimpleDirect, we see our own products at risk of obsolescence if we don’t adapt. It’s forcing us to rethink how we plan for the future and embrace innovation. We have to go beyond just being an app—our goal is to enable AI-driven outcomes.

Building a tech company today is different from what it was five years ago—and it should be. For too long, the industry has focused on incremental improvements: layering convenience over CRUD databases and refining UI/UX without fundamentally rethinking what’s possible. The rise of AI agents challenges all of that.

Looking Ahead

The market is shifting fast. What’s true today may not be true tomorrow. But that’s what makes this moment exciting. It’s not about survival for survival’s sake—it’s about innovation, reinvention, and creating the tools that will define the next era.

And just as we’re navigating this shift at SimpleDirect, I encourage every founder, developer, and entrepreneur to think deeply about your role in this coming wave. The rules are changing. Are you ready?