Claude code can indeed replicate the core functionality of a SaaS tool within a few weeks, but even so, before AI existed, there were plenty of free open-source projects for the same SaaS applications. While AI can replicate today, it's essentially just reinventing the wheel. What AI truly has the potential to disrupt is the traditional SaaS pricing model. Traditional SaaS charges per seat. If AI boosts productivity and reduces the need for many positions, that would be a fatal blow to traditional SaaS. Secondly, the pricing logic of traditional SaaS will be somewhat influenced by the per-token consumption model of AI large language models.

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A capable developer using Claude Code or Codex can replicate the core functionality of a mid-tier SaaS product within a few weeks. It's not perfect and doesn't handle every edge case, but it's enough to make the CIO reviewing a $500,000 annual renewal start asking: "What if we build it ourselves?"

This is the crisis facing software stocks right now.

https://x.com/iamai_eth/status/2025779377221582961?s=46

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