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Feb 4, 2026 · Product Management

Why AI Is Undermining Traditional SaaS and What 2026 Software Startups Must Do

The recent plunge in software stocks reveals that large‑model AI is eroding the core value of traditional SaaS, forcing a shift from GUI‑driven products to language‑based interfaces, prompting firms to focus on token efficiency, plugin architectures, and outcome‑based pricing to survive.