Article Summary
AI is reshaping how businesses use software, often reducing reliance on traditional SaaS tools and per-seat models. This article highlights why existing SaaS agreements may no longer align with actual usage and what to review to avoid unnecessary cost.
Software as a Service (SaaS) has become standard across most businesses, offering predictable pricing, easy deployment and scalable tools. But recent developments in AI are starting to challenge the value of some of those subscriptions.
What’s Changing
AI is shifting software from something that supports work to something that can increasingly perform it. In practical terms, that means fewer people may be needed to complete the same tasks, multiple tools may be replaced by a single AI-driven workflow, and bespoke solutions are becoming faster and cheaper to build. We’re already seeing market reactions to this shift, with companies like Atlassian, Canva and REA Group under pressure as expectations around software change.
At a recent Business Essentials Seminar we covered some critical aspects of dealing with AI driven redundancies. You can view the livestream recording of that Seminar here.
Why It Matters for Your Agreements
Many SaaS contracts were designed for a different environment. Common features include multi-year terms, automatic renewals and per-seat pricing. Those settings can quietly become expensive if your actual usage changes. The risk is simple: you continue paying for capacity and functionality you no longer need.
What to Look At Now
A quick review can go a long way. Focus on term and renewal dates, whether per-seat pricing still makes sense, actual usage across licences, and whether AI-enabled or bespoke solutions could deliver the same outcomes more efficiently.
The Takeaway
SaaS isn’t going away just yet (or at least that is our prediction), but the economics around it are shifting. The opportunity now is to make sure your agreements keep pace with that change, rather than locking you into yesterday’s model. Business imperatives may mean investing in Prompt Engineers or comparable skills so you can stay ahead of these shifting trends.
How We Can Help
Our Intellectual Property + Technology team can assist with SaaS agreement reviews and renegotiation, technology procurement strategy, and AI integration and risk considerations. If you would like us to sense-check your current arrangements, we’re happy to help.
For further information contact Managing Director Ben Gouldson.
The assistance of Legal Assistant Hugh Jubb in researching this article is gratefully acknowledged.
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