Artificial intelligence has created a detour on the road of software as a service (SaaS), dividing the sector between businesses that tend to grow and those that risk disappearing in the face of a technology that is no longer a novelty in Silicon Valley, according to a study by Acorn Advisory, a middle-market M&A boutique.
The so-called SaaSpocalypse has split the sector. On one side are AI-native startups, with automation built in-house across all their processes and in the product itself, which are expected to command higher multiples and valuations. On the other, SaaS companies that do not adopt AI tend to move sideways or even disappear, depending on their business area.
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