Andy Black
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Interesting read.
View: https://x.com/vasuman/status/2010473638110363839?utm_source=tldrai
This stood out for me:
SaaS is easy to purchase: It has a demo, a price, and a checkbox next to the requirement you were trying to fill.
Someone can approve it and feel like progress happened (even though this is rarely the case).
The worst part purchasing AI SaaS is it just sits there. It doesn't integrate with how work actually happens, and becomes another system people have to log into. You're forced to migrate and after a month it's just another vendor to manage. Finally in 12 months it's abandoned and you're stuck with it because the switching cost is too high, resulting in what is called tech debt.
Bespoke AI Agents built on your existing infrastructure don't have this problem.
They operate inside the systems you already use. They don't create a new place to do work. In fact, they make existing work faster. The agent handles the task, while the human sees the result.
The real cost comparison isn't license fees versus development cost, it's a lot simpler.
SaaS accumulates “tech debt”. Every tool you buy is another integration to maintain, another system that will eventually go out of date, another vendor that might get acquired or pivot or shut down.
Agents built in-house accumulate capability. Every improvement makes the system smarter, and every new workflow extends what's possible. The investment compounds instead of depreciating. This is why I have been preaching for the last year: AI SaaS is going nowhere. And the industry is confirming this stat: most companies purchasing AI SaaS churn within 6 months, and see absolutely no productivity gains from implementing AI.
The only companies who see AI gains are those who have custom agents built specifically for them, either in house or by a 3rd party agency.
This is why the companies that figure out agents early will have a structural advantage for years. They're building infrastructure that gets better over time.
Everyone else is renting tools that will eventually need to be replaced. And when the space is changing every month, every week lost has serious implications for your roadmap and your business as a whole.
View: https://x.com/vasuman/status/2010473638110363839?utm_source=tldrai
This stood out for me:
Lesson 5: Economics of AI Agents vs. Generic SaaS
There's a reason companies keep buying SaaS tools that nobody uses (and it’s awfully painful to see).SaaS is easy to purchase: It has a demo, a price, and a checkbox next to the requirement you were trying to fill.
Someone can approve it and feel like progress happened (even though this is rarely the case).
The worst part purchasing AI SaaS is it just sits there. It doesn't integrate with how work actually happens, and becomes another system people have to log into. You're forced to migrate and after a month it's just another vendor to manage. Finally in 12 months it's abandoned and you're stuck with it because the switching cost is too high, resulting in what is called tech debt.
Bespoke AI Agents built on your existing infrastructure don't have this problem.
They operate inside the systems you already use. They don't create a new place to do work. In fact, they make existing work faster. The agent handles the task, while the human sees the result.
The real cost comparison isn't license fees versus development cost, it's a lot simpler.
SaaS accumulates “tech debt”. Every tool you buy is another integration to maintain, another system that will eventually go out of date, another vendor that might get acquired or pivot or shut down.
Agents built in-house accumulate capability. Every improvement makes the system smarter, and every new workflow extends what's possible. The investment compounds instead of depreciating. This is why I have been preaching for the last year: AI SaaS is going nowhere. And the industry is confirming this stat: most companies purchasing AI SaaS churn within 6 months, and see absolutely no productivity gains from implementing AI.
The only companies who see AI gains are those who have custom agents built specifically for them, either in house or by a 3rd party agency.
This is why the companies that figure out agents early will have a structural advantage for years. They're building infrastructure that gets better over time.
Everyone else is renting tools that will eventually need to be replaced. And when the space is changing every month, every week lost has serious implications for your roadmap and your business as a whole.
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