Yeah I appreciate this interpretation because I've been struggling to hold the two common narratives in my head at the same time. The first is that AI platforms are weak wrappers that aren't the system of record, while somehow the Saas system of records are totally at risk. There's an obvious conflict there. As I was reading your article I kept thinking of Salesforce and how entrenched they are in their enterprise clients.
You nailed the contradiction. If AI agents lack deep context and workflow integration, they're not replacing systems of record, they're running on top of them. And the smarter SaaS incumbents are adopting AI in exactly this way, embedding it into the system of record rather than letting it replace it. The moat holds only if they keep earning it.
Yeah I appreciate this interpretation because I've been struggling to hold the two common narratives in my head at the same time. The first is that AI platforms are weak wrappers that aren't the system of record, while somehow the Saas system of records are totally at risk. There's an obvious conflict there. As I was reading your article I kept thinking of Salesforce and how entrenched they are in their enterprise clients.
You nailed the contradiction. If AI agents lack deep context and workflow integration, they're not replacing systems of record, they're running on top of them. And the smarter SaaS incumbents are adopting AI in exactly this way, embedding it into the system of record rather than letting it replace it. The moat holds only if they keep earning it.