AI threatens to eat business software – and it could change the way we work
AI threatens to eat business software – and it could change the way we work
Publish Date: 2026-02-11 23:23:00
Source Domain: theconversation.com
In recent weeks, a range of large “software-as-a-service” companies, including Salesforce, ServiceNow and Oracle, have seen their share prices tumble.
Even if you’ve never used these companies’ software tools, there’s a good chance your employer has. These tools manage key data about customers, employees, suppliers and products, supporting everything from payroll and purchasing to customer service.
Now new “agentic” artificial intelligence (AI) tools for business are expected to reduce reliance on traditional software for everyday work. These include Anthropic’s Cowork, OpenAI’s Frontier and open-source agent platforms such as OpenClaw.
But just how important are these software-as-a-service companies now? How fast could AI replace them – and are the jobs of people who use the software safe?
The digital plumbing of the business world
Software‑as‑a‑service systems run in the cloud, reducing the need for in‑house hardware and IT staff. They also make it easier for businesses to scale as they grow.
Software-as-a-service vendors get a steady, recurring income as firms “rent” the software, usually paying per user (often called a “seat”).
Software-as-a-service providers help with a wide range of functions, from paying staff to managing customer relationships.
Austin Distel/Unsplash
And because these systems become deeply embedded in how these firms operate, switching providers can be costly and risky.
Sometimes firms are locked into using them for a decade or more.
Digital co-workers
Agentic AI systems act like digital co-workers or “bots”. Software bots or agents are not new. Robotic process automation is used in many firms to handle routine, rules-based tasks.
The more recent developments in agentic AI combine this automation with generative AI technology, to complete more complex goals.
This can include selecting tools,…
