In the wake of last week’s sharp sell-off in software and IT stocks, fresh debate has emerged over the future of SaaS in the age of artificial intelligence. The market downturn followed the announcement of new built-in plug-ins for Claude Cowork, an enterprise automation tool, which reportedly triggered concerns among retail investors about AI replacing traditional SaaS products.
However, Databricks CEO Ali Ghodsi has offered a different view. In an interview with a technology publication, he said AI does not pose a direct threat to SaaS companies. Instead, he suggested that the real disruption could impact professionals who specialise in specific SaaS platforms.
Databricks recently announced its Q4 2025 earnings, reporting a $5.4 billion (around Rs. 48,867 crore) revenue run-rate, reflecting 65% year-on-year growth. Ghodsi noted that despite rapid AI adoption, the company has not seen a decline in usage of its enterprise cloud warehouse services.
He explained that the major shift will happen as natural language becomes the main interface for software. Traditionally, extracting insights from databases required writing precise Structured Query Language (SQL) code. Non-technical users often depended on analysts or developers to create “special report” dashboards, sometimes taking weeks.
With AI agents powered by natural language prompts, these barriers are being reduced. Users with no technical background can now simply describe what they need, and AI systems can process the request.
According to Ghodsi, the larger risk lies with specialists trained on specific SaaS interfaces such as Salesforce or SAP. “Millions of people around the world got trained on those user interfaces. And so that was the biggest moat that those businesses have,” he said.
He added that AI-native companies may be better positioned to build SaaS tools designed to work seamlessly with AI agents, potentially offering greater value to enterprises than traditional software models.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
