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September 22.2025

2 Minutes Read

How Can Businesses Upgrade Software Models in the AI Era?

Upgrading software business models to thrive in the AI era

Understanding the AI+SaaS Revolution

The emergence of artificial intelligence (AI) has redefined the landscape of software business models, particularly in the realm of Software as a Service (SaaS). With AI shifting from a mere tool to a proactive agent that orchestrates work, it's essential for software companies to adapt their business models. In just three years since its inception, generative AI has become a leading force in enterprise software, enabling organizations to unlock potential productivity enhancements valued at a staggering $4.4 trillion.

What Does the Data Say?

McKinsey's findings indicate that the opportunities created by AI+SaaS are witnessing remarkable growth. One year ago, only 33% of surveyed companies reported significant productivity gains from AI, while this figure has surged to 46% in 2025. However, despite the potential, the industry remains grappling with questions about the most effective go-to-market (GTM) strategies and business models to capitalize on this AI-enabled landscape.

Lessons from Initial AI Monetization Efforts

While initial efforts, such as GitHub's Copilot achieving nearly two million paid users, demonstrate some traction in AI monetization, challenges persist. Global investment in AI applications has increased eightfold recently, surpassing $5 billion, yet this still comprises less than 1% of all software application spending. Common hurdles include effectively communicating the value of AI. Only about 30% of companies have quantified their return on investment (ROI) based on real-world deployments. This emphasizes the pressing need for organizations to translate AI's capabilities into clear financial benefits.

Practical Insights for Business Leaders

For mid-to-senior professionals in industries like healthcare and finance, it is crucial to revisit and potentially reshape business strategies. Adopting a customer-centric focus can help leaders utilize AI to enhance operational efficiency and drive value creation. Companies that demonstrate clear ROI, akin to Salesforce's innovative AI tools, stand a greater chance to effectively market their AI services.

Future Predictions: What Lies Ahead?

Looking towards the future, the trend of integrating AI into SaaS will likely accelerate. Emerging technologies will reshape client interactions, necessitating organizations to champion transformational change. By investing in management consulting and embracing digital transformation, businesses can gain insights and actionable data to stay competitive in this evolving environment. As a leader, it’s your responsibility to navigate these transformations mindfully, ensuring that your operations align with technological advancements.

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How Can Businesses Upgrade Software Models in the AI Era?

Understanding the AI+SaaS Revolution

What Does the Data Say?

Lessons from Initial AI Monetization Efforts

Practical Insights for Business Leaders

Future Predictions: What Lies Ahead?

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