"Our mission is that anyone can create software... naturally, their assets become less valuable. What we are seeing is that people who previously had different software providers... build out their own technology stack." AI-assisted coding is democratizing software creation. Legacy SaaS companies that charge high recurring licensing fees will face massive churn as enterprise clients realize they can use AI to build and maintain their own custom internal tools for a fraction of the cost. SHORT. The moat for traditional enterprise software is evaporating, which will lead to structural multiple compression and declining profit margins across the sector. Legacy SaaS companies successfully integrate AI into their own platforms, creating enough added value to justify their pricing and retain enterprise clients.