AI Is Killing Old SaaS Moats

There's a saying: If you're not growing, you're dying. A bit of a hyperbole but...

In the AI-driven era, development itself is commoditizing.

The new sustained value for SaaS and tech/mobile co's? Brand equity. SEO and ASO real estate. Distribution dominance. Personality. Unique data, community, trust, brand personality.

Why?

Raw development is no longer your moat. AI-assisted development enables teams to ship entire products, not just features, in half the time.

The pace of change is unprecedented.

A few sobering stats...

Developers now code 55% faster with AI assistance.

Product teams are shipping features in half the time. Speed—not tech—is the new differentiator.

Nearly half (45%) of global CEOs doubt their business's viability in the next decade without drastic reinvention. (This stat should be way higher)

here's what I think leaders must do immediately:

Double-down on AI now. Your 2026 roadmap is irrelevant if you're not adopting AI aggressively today.

Refactor your moat. Distribution, data flywheels, and relentless shipping velocity are your new defensible edges.

Remove internal adoption friction.

Tighten feedback cycles radically. Weeks are the new quarters. Use AI to prototype, test, and iterate at market speed.

Invest in momentum. Standing still—even for one planning cycle—means falling an entire generation behind.

AI isn't just incremental improvement—it's rewriting the cadence of innovation.

Adapt fast or risk obsolescence.

SaaStr.ai 802 just dropped a hyper-relevant wake up call:

• AI's importance and pace of change is rapidly accelerating.
• Tough love is needed: companies must move faster and adopt AI to avoid falling behind, as the playbooks from 2023 are no longer sufficient.
• The stability and predictability of SaaS growth, are diminishing, leading to increased instability and stress for companies.
• Companies are experiencing "maiming" through smaller deals and reduced NRR due to more innovative, AI-first competitors.
• SaaS companies benefited from easy growth due to the same playbooks working for years, but now a shift is needed because of AI.
• Companies need to be relentless in AI adoption, moving beyond experimentation, as competition will be relentless.
• Many SaaS companies became "soft" and benefited from a buying wave, but now need to change as those conditions no longer exist.
• A significant percentage of current teams (20-40%) may not be able to adapt to the AI age, requiring companies to make tough decisions about re-skilling and potential layoffs.
• The "AI slow roll," where companies are hesitant to fully embrace AI, needs to be avoided to remain competitive.
• Competition is increasing, with many more companies entering spaces that were previously less competitive due to the advent of AI.
• Moats that previously protected companies are weakening due to AI, making momentum more important.
• Companies must work harder, be twice as productive, and prioritize AI to succeed in the new landscape.