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The rise of AI Agents is causing major changes in the IT world. Microsoft CEO Satya Nadella recently expressed the expectation that the introduction of AI agents might mark the end of Software as a Service (SaaS). But how realistic is this prediction? In a recent interview with Paulo Rosado, CEO of OutSystems, he was asked the question and we talked about how companies will deal with software in the future.
In the world of enterprise applications and systems, the nature of software is constantly changing. Where companies used to rely on static applications and long-term licenses, they are now increasingly being replaced by flexible SaaS solutions. However, with the arrival of AI agents, who automate tasks and use data smarter, a new layer is being created that can function on top of or instead of traditional applications.
“The nature of these applications is changing drastically and will change even more dramatically in the future.”
According to Paulo Rosado, organizations should therefore revise their way of using and developing software. It is no longer enough to simply purchase ready-made solutions; there is a need for systems that adapt quickly to changing circumstances and specific business goals.
Also read our article IT as the new HR? How AI agents are turning the workplace upside down
Despite the rapid developments in AI and automation, software remains an indispensable part of every organization. The core of business systems — from ERP to CRM — remains. The question, however, is how this software is developed and deployed.
“We're still going to need software, but we're finally coming to the conclusion that we need to automate software production.”
Rosado highlights the role of automated tools and platforms that greatly simplify software building. Low-code and no-code platforms, which OutSystems itself also uses, are good examples of this. Integrating with AI will only accelerate this trend, making organizations less dependent on external IT parties or complex development teams.
Also read our article: AI agents: the solution to the biggest data problem
According to Paulo Rosado, we are in for two major “disruptions”:
Also read our article: The end of SaaS? How AI agents are shaping the future of software
The discussion whether Software as a Service will disappear permanently is probably too short-sighted. It is more likely that SaaS is undergoing a metamorphosis, partly due to AI. Automation will play a key role in how software is created and used. Instead of the end of SaaS, it is more realistic to speak of a next phase where SaaS solutions and AI accomplices seamlessly merge.
“The nature of the applications is changing, but there is still a need for software. We're just going to produce and integrate smarter.”
Satya Nadella's prediction that AI agents would mark the end of Software as a Service needs to be viewed with nuance. Although the technological shift is huge, software remains a crucial part of organizations. However, the way in which that software is created and offered will change dramatically.
Paulo Rosado, CEO of OutSystems, underlines that AI and automation are changing the rules of how software is developed and deployed. This does not mark a definitive end, but rather a new era for software and SaaS, which focuses on automating software production and using AI for business processes.
Watch an excerpt of AI.nl's interview with OutSystems CEO Paulo Rosado here
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