Zoho CEO Sridhar Vembu warns: AI could disrupt the future of SaaS

Zoho’s Chief Scientist, Sridhar Vembu, has voiced his concerns about the potential impact of artificial intelligence (AI) on the Software as a Service (SaaS) industry. The SaaS ecosystem has been significantly affected by an earlier influx of venture capital, which fueled rapid growth without a strong focus on profitability. However, with that funding now largely redirected toward AI ventures, the flow of capital into SaaS has slowed considerably. As a result, many SaaS companies—previously operating at a loss—are now under pressure to shift their focus toward sustainable, profit-driven models.