Generative AI is a threat to SaaS companies. Here's why.

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Welcome to the final phase of software eating the world. SaaS companies beware, you're on the menu this time.

Some later-stage tech startups are trying to get ahead of the curve by sharing the power of creation with their customers. One example can be found in knowledge base startup Guru's AI writing assistant, which lets customers create their own custom tones of voice using generative AI. This challenges the traditional idea of software as a rigid tool with a fixed set of available actions for users, Guru cofounder and CEO Rick Nucci told Insider.

In more extreme cases, entire tools could be generated by AI on the fly to replace common actions a user takes, CRV principal Brittany Walker said. autonomous AI agents First, the choice between building software yourself or buying from a third party brings with it a substantial opportunity cost.

 

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