Digital

'Artificial intelligence, we are not witnessing the end of software'

For Maximilien Abadie, deputy CEO of Lectra, the value lies in the processes accumulated over the years and the quality of the information

by Gianni Rusconi

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The end of subscription-based software or, more simply, the end of its position? The debate around the so-called 'SaaSpocalypse' also stems from here, from the conviction that generative artificial intelligence and so-calledvibe coding (the ability to create applications through natural language prompts) may empty traditional SaaS platforms of value, homologising code generation to reduce its relevance. If software delivered in service mode, in other words, can be generated almost in real time by AI agents, why continue to pay increasingly expensive licences and subscriptions?

The historical protagonists of theenterprise software are the first stakeholders to be affected by this reflection, although the actual scenario is probably less radical than the apocalyptic narrative would have us imagine and reflects a profound and complex transformation, which affects the relationship between artificial intelligence and digital business models.

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How will the software evolve?

"We are not witnessing the end of software, but its evolution," observes Maximilien Abadie, deputy CEO of Lectra, a French technology group present in more than a hundred countries and active in the fashion, furniture and automotive sectors with a platform that combines SaaS, IoT, analytics and AI technologies to support production processes.

"Fifteen or twenty years ago," the manager explained to Il Sole 24 Ore, "the cloud allowed software companies to reinvent their business model. Today, artificial intelligence allows us to raise the bar even higher, because it makes the generic ability to write code a commodity, but it cannot make proprietary industrial data or workflows tailored to an industry a commodity".

"Value lies in accumulated processes"

In short, in Lectra's vision, agents and generative tools will not eliminate enterprise software because they cannot replace what really creates value in organisations, particularly those active in complex industries where data is not public and does not feed into large language models. "In fashion or automotive," Abadie points out, "the value lies in the processes accumulated over the years and in the quality of industrial information, security and business continuity. Companies need systems that are reliable, scalable and capable of running 24 hours a day without interruption, and on issues such as product traceability there can be no compromises on data quality and accuracy'.

From 'product' to results-oriented model

The real 'apocalypse' is therefore hovering over the SaaS business model, which for years has seen software sold as a product and which now, inevitably, sees AI accelerating the shift towards an approach geared towards delivering business results. It is not the number of available functionalities of an application that generates the real value but the concrete impact it has on processes, in the form of reduced waste, increased productivity, increased margins or speed of execution.

Lectra has been going down this path since 2018, introducing monetised offers based on software usage or output generated, and reflects the trend that wants the technology provider to be a continuous operating partner of the company, through support services and customer success. "Customers," Abadie explains the concept further, "don't just buy technology or machines, they expect us to accompany them in their transformation, and a results-oriented model obliges us to ensure that the software produces what they expect.

Finally, there is another issue that is destined to become central in the era of agent-based AI and that is software accountability. The conviction of Lectra's Deputy CEO in this regard is explicit: companies will not delegate critical decisions to AI-driven systems that they cannot verify through human control and will always want to understand how AI reaches a conclusion.

Rather than the end of SaaS, in short, it is good to focus on a new phase, in which software can no longer be limited to being a tool to be rented on a pay-as-you-go basis, but must constantly demonstrate reliability, operational impact and (also) the ability to take responsibility. And while agent intelligence can accelerate development by lowering the barriers to entry, the need for reliable databases and AI-ready infrastructures and processes certainly does not diminish (on the contrary).

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