There are now two kinds of SaaS founders: Those who’ve had their big AI epiphany and those who haven’t (yet).
The first group is redesigning their businesses and shipping new products.
The second group is still debating how fast this AI shift will happen to them.
I see it every day, talking to practical, bootstrapped software founders of all sizes.
It’s the old quote, “The future is already here, but it’s not evenly distributed.”
Last year, the AI epiphany looked like “Wow, this is already very cool and useful. I can see where this is going and how I can apply it.
- Some played with Lovable and built apps and completely new UIs.
- Early adopter coders used AI tools to code and test faster.
- Others used LLMs to research keywords and draft SEO and GEO content at scale.
- And draft content, brainstorm ideas, make images, and answer simple support questions.
Others were skeptical. “This isn’t ready for prime time,” or “I don’t want to change how we do things.”
That was last year with early adopters and laggards.
This year, every founder I know is getting their AI epiphanies:
“Holy crap. This is going to change my business, and we’d better get on it.”
There are fewer AI laggards, and there are more ways to use (and not use) AI in our software businesses. There isn’t one way to use it.
Over the last 2 months, the practical founders I know have been making progress with AI and moving faster.
- Claude Code and other tools show that code is no longer a long-term moat, unless you can deliver value to your customers faster than your competitors.
- Other moats are breaking down, and these founders are adjusting fast to shore up proprietary data, workflows, distribution, communities, and brands.
- Many practical vertical SaaS companies are shipping AI products that deliver the “just get it done for me in 60 seconds”-like AI-first experiences.
- Most founders are adjusting their expectations for selling a certain size and type of SaaS company. Maybe 5X is the new 10X, unless you can change your Rule of 30 software company to a Rule of 70 company with AI efficiency and massive customer value.
- Others are using (or shipping) agents in their businesses to get work done. They are growing and doing more, and not hiring more people. Most are starting to imagine being twice the size without hiring.
SaaS is changing with AI, but it’s not dead.
There is still time to shift, but that time frame is debatable–especially to VC, PE and public investors.
Old SaaS will decline slowly if it doesn’t change, but new AI+SaaS will move faster.
Making a big shift takes a lot of testing and thinking, with small bets before big bets. And it’s already working for many founders I know, but not all.
Bigger companies that aren’t founder-led will move more slowly than smaller companies with founders who create practical innovation and move their teams quickly.
