AI Is Killing the SaaS Model

I often ask myself a question before paying for software.

Could I build this myself?

The answer is now yes.

Years ago, building software required deep technical skills. You needed teams, months of work, and complex infrastructure. SaaS companies existed because people could not build their own tools.

AI changed this.

A junior developer can now design and ship a functional app in days. A student can build what used to require a funded startup.

If anyone can build software, why pay for it?

Before I subscribe to a tool, I ask three things:

  • Do I need every feature or just 20%?
  • Can I build a light version for my specific needs?
  • Is the subscription worth the maintenance?

AI makes custom solutions faster than changing my workflow to fit a generic product. I can build a personal project manager or a custom dashboard in a weekend.

Why pay $12 a month for 80% of what I need when I can build 100% of what I need for free?

Simple, single-purpose SaaS tools are in trouble. If your only value is "we wrote the code so you do not have to," AI erased your moat.

This applies to:

  • Form builders
  • Invoice generators
  • Basic project trackers
  • Simple landing page builders

To survive, you need things AI solo developers cannot easily replicate:

  • Network effects from large user bases.
  • Data moats from massive data sets.
  • Deep ecosystem integrations.
  • High-level compliance and trust.
  • Massive scale infrastructure.

Companies like Stripe or Figma are safe because they offer things a solo dev cannot build alone. A $9 form builder with no unique angle is not safe.

If you build software, ask yourself this:

Could a developer using AI replicate your core value in a weekend?

If the answer is yes, you have a problem.

The market is splitting into two groups:

  1. Personal tools. These are custom, free, and built by individuals for themselves.
  2. Platform-scale products. These have data, networks, and complex infrastructure.

The middle ground is disappearing. Simple, bloated, and expensive SaaS tools will get squeezed.

This is good for users. We no longer have to pay for generic tools. AI gives us an exit.

Do you build your own tools now? Or do paid products still have the edge?

Source: https://dev.to/josaphatstar/ai-is-killing-the-saas-model-and-i-think-thats-a-good-thing-4cna