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Everything you need to know about the new trend: Services-as-Software
| USA | economy

Everything you need to know about the new trend: Services-as-Software

#Services-as-Software #SaaS #Generative AI #Digital Agents #Automation #Professional Services #Outcome-based pricing

📌 Key Takeaways

  • Services-as-Software represents a shift from providing digital tools to providing automated digital labor.
  • The model moves away from per-seat subscription pricing toward outcome-based or performance-based billing.
  • Generative AI and specialized agents are the primary drivers enabling this transformation in the professional services sector.
  • This trend threatens to disrupt traditional industries like law, accounting, and consulting that rely on billable hours.

📖 Full Retelling

Technology analysts and venture capital firms throughout Silicon Valley have identified 'Services-as-Software' (SaaS 2.0) as the defining economic trend of early 2024, representing a fundamental shift in how businesses automate complex professional tasks using generative artificial intelligence. This emerging model moves beyond traditional Software-as-a-Service (SaaS) by not just providing the tools for human employees to use, but by selling the end result of the work itself. Major investment firms and tech startups are pivoting toward this architecture to address the rising costs of human labor and the increasing proficiency of specialized Large Language Models in corporate environments. Unlike traditional cloud software, which requires a subscription fee for access to a platform, Services-as-Software platforms function as 'AI employees' or digital agents. Instead of charging per user seat, companies are increasingly billing based on outcomes—such as a completed legal review, a resolved customer service ticket, or a finished architectural draft. This transition is expected to disrupt the trillion-dollar global professional services industry, which has historically relied on billable hours from consultants, lawyers, and accountants. The economic implications of this shift are profound for the global economy, as it allows small and medium-sized enterprises to access high-level expertise at a fraction of the traditional cost. While traditional SaaS focused on providing an empty digital workspace, this new wave of startups offers pre-trained systems that arrive with the 'skills' necessary to perform the job autonomously. As the market matures, the competitive landscape is expected to favor companies that can integrate deep domain-specific data with agentic AI workflows, potentially leading to a massive reallocation of corporate budgets from human payroll to automated service subscriptions.

🏷️ Themes

Technology, Economy, Artificial Intelligence

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🔗 Entity Intersection Graph

Connections for Automation:

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) Everything you need to know about the new trend: Services-as-Software Author Sam Boughedda Stock Markets Published 02/09/2026, 10:48 AM Everything you need to know about the new trend: Services-as-Software 0 CAPP -8.19% REY -4.66% Investing.com -- An emerging technology model known as Services-as-Software is set to reshape the global services industry over the next several years, according to Bernstein analyst Richard Nguyen. Access in-depth analyst-driven data on InvestingPro In a note to clients on Monday, the analyst described it as “an emerging trend that will profoundly transform the business model of services providers, and reshape the competitive landscape, over the next 3-to-5 years.” Nguyen explained that the model involves delivering services “primarily through AI-powered software rather than through traditional human-delivered work,” with customers paying for outcomes rather than labour hours. The shift is accelerating because “six enterprises out of ten plan to replace people-run services with software-run services by 2028,” driven by advances in AI, contract renegotiation and increased in-sourcing, Bernstein stated. The potential market is seen as substantial. Bernstein cited Gartner figures suggesting the sector could reach “up to $700bn by 2028 from less than $20bn in 2025,” while HfS Research projects revenues of “$600bn in 2028, and $1.5tr by 2035.” The transition is expected to significantly reshape budgets, with Services-as-Software expected to account for 20% of IT spend by 2028, compared with zero today. For providers, Bernstein said: “Services providers n...

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