Why SaaS isn´t going anywhere

Before we get into it: Feel free to hit me with any solid counter-argument for the sake of the discussion. Macro thesis: SaaS are here to stay - AI will not be as disruptive as millions of people believe. Think about it: AI barely as any involvement in SaaS (ca. < 5% of the entire market) and whenever it is involved, services simply are beyond bad. Yes, AI can accumulate data, summarize and what not - but when it comes to the very markets SaaS has a hold on, AI simply doesn´t deliver: Photo editing with AI tools always results in an unnatural look, environments designed for legal reasons need that human touch (think of law-text-analysis etc.), and then there is tax offices and other state institutions which need to stay up and running. If one were to replace all these well-established systems with AI, the disruption of the very functionality of such institutions would be huge: Imagine a state´s tax office having to first migrate the huge amount of data, then doing so safely, then training thousands of employees anew. Before you know it, a year has passed and a state´s very financial infrastructure would end in a catastrophe. Switching costs + disrupted workflows + integration issues -> all becomes an issue. Then AI most likely will complement SaaS, not replace it. Think of AI as an interface for SaaS professionals. Next to that, the market is punishing SaaS stocks just because of the current AI boom narrative. People are trying to guess the outcome of the future again - in the meantime SaaS deliver hard numbers. Sometimes slow and steady, yes - but that´s what we want: Steady growth at little risk. I´d argue that certain niche SaaS markets might be disrupted, yeah: Content generation and marketing automation. But that´s about it. Crucial infrastructure as in tax, state, defence, etc. is a different story. \--- Let me know your take. :)