AI surge triggers “SaaS-pocalypse” fears

2026-02-27 - 09:32

Rapid advances in artificial intelligence, led by firms such as Anthropic and OpenAI, have triggered sharp volatility across global technology markets, raising doubts about the long-term outlook for the software-as-a-service (SaaS) sector. The sell-off intensified after a series of new autonomous AI tools were unveiled, deepening investor concerns that traditional enterprise software models may face structural disruption. Software stocks under pressure The iShares Expanded Tech-Software Sector ETF, which tracks US-listed software companies, declined roughly 30% in February. On Feb. 4 alone, software equities lost nearly $300 billion in market value during a single trading session. Major names including Atlassian and Intuit recorded steep one-day drops of more than 30%, while cybersecurity firms such as CrowdStrike, Cloudflare and Okta also slid sharply. Shares of IBM suffered their largest daily fall since 2000 after the launch of a tool designed to modernize legacy code, closing down 13% in one session and 27% for the month. Autonomous AI tools challenge SaaS model Anthropic introduced several new AI-driven systems, including contract review solutions, finance and customer service integrations, and “Claude Cowork” add-ons capable of operating autonomously within corporate environments. It later unveiled Claude Code Security, a system that scans and patches vulnerabilities across codebases. Meanwhile, OpenAI released an updated version of its software development assistant Codex, signalling intensifying competition among AI providers. Analysts at Morgan Stanley described these developments as evidence of escalating rivalry in the AI sector. Investors are increasingly questioning whether enterprises will continue to pay for external SaaS subscriptions if AI agents can internally generate code, automate workflows and manage security tasks. Established platforms such as Salesforce have come under scrutiny as markets reassess future demand for licensed applications. Emerging AI agent economy Technology leaders argue that artificial intelligence is moving beyond incremental productivity gains toward deeper operational transformation. Meta reported that AI tools increased annual productivity per engineer by 30%, and by as much as 80% for advanced users. Industry observers describe the shift as the beginning of an “AI agent economy,” in which autonomous systems execute tasks traditionally handled by software platforms or human employees. However, cautionary voices have emerged. Satya Nadella, chief executive of Microsoft, warned at the 56th World Economic Forum in Davos that the AI sector could risk forming a speculative bubble if benefits remain concentrated among major technology firms rather than spreading across industries. Economists note that recent market turbulence may partly reflect panic selling following consecutive AI product announcements. Whether artificial intelligence ultimately complements existing SaaS providers or fundamentally reshapes global labor markets and enterprise software remains an open question.