AI agents are transforming how businesses approach Software as a Service (SaaS). Traditionally, companies relied heavily on third-party SaaS tools, but now many are considering building their own solutions using AI agents. This shift is particularly noticeable in simpler SaaS applications, where engineers find they can create custom tools quickly and efficiently, bypassing the need for paid services. For instance, instead of using platforms like Retool for internal dashboards, developers are using AI tools to build tailored solutions that meet specific needs without the added costs and limitations of third-party services. As teams reevaluate their reliance on established SaaS vendors, questions are emerging about the necessity of expensive renewal quotes. Companies are beginning to ask whether they can replicate the functionality of these tools in-house, especially when faced with annual price increases. This change reflects a broader trend where organizations with some tech capability are scrutinizing their SaaS investments, leading to potential declines in demand for certain SaaS products. Despite the allure of building internal solutions, there are challenges, primarily around maintenance. While SaaS products often come with their own maintenance headaches, using AI agents can simplify updates and reduce security risks by keeping data within an organization. However, sectors requiring high uptime and specialized knowledge, like payment processing or systems with significant network effects, remain difficult to replace. Companies relying on proprietary datasets or those with rich integration ecosystems still hold substantial value, indicating that while AI agents may disrupt the SaaS market, they won’t completely dismantle it.