The rapid advancement of artificial intelligence has created an extraordinary disturbance within the software sector over the course of this year, sending reverberations across an industry long considered stable and highly profitable. This ongoing disruption was brought into sharp focus on Tuesday when a senior executive from OpenAI delivered a candid warning that underscored the magnitude of the potential threat facing the software-as-a-service (SaaS) market.
Speaking at the Goldman Sachs technology conference in San Francisco, OpenAI’s Chief Financial Officer, Sarah Friar, fielded questions regarding comments recently made by her colleague, CEO Sam Altman. Altman had previously ignited widespread debate within the tech community by succinctly declaring on social media that the SaaS sector was approaching what he described as its “fast fashion era.” This evocative phrase alluded to the way fast fashion transformed the clothing industry: by accelerating trends, compressing production cycles, and fundamentally altering consumer expectations. Friar elaborated on his remark by suggesting that the SaaS industry might now be bracing for an equivalent upheaval, in which artificial intelligence accelerates software creation and consumption to an unprecedented degree.
According to Friar, the foundational value chain that underpins the SaaS business model is undergoing immense disruption. She emphasized that the real danger to companies does not stem from AI itself in isolation, but rather from competitors who swiftly and intelligently incorporate AI tools into their workflows. As she explained, “It’s not the algorithm that eliminates your job or renders a company irrelevant, but the rival enterprise or innovative team that fully embraces AI integration who could easily displace you.” This framing reflects a core theme in recent discussions: those who fail to adapt at speed risk obsolescence in an environment where technological acceleration leaves little margin for hesitation.
The turbulence in public markets reflects these concerns. Shares in prominent software providers such as Salesforce and HubSpot have faltered this year as investors grow increasingly anxious that AI-driven tools may allow businesses to construct sophisticated software internally, thereby reducing demand for expensive third-party SaaS subscriptions. This phenomenon has sparked a renewed debate on Wall Street, centering on the perennial question of “buy versus build.” Analysts and researchers have noted that more than a hundred publicly traded software companies could face immense pressure, caught between resourceful AI-powered startups on one hand and dominant technology giants already optimizing AI capabilities on the other.
Against this backdrop, Friar amplified the conversation by likening the rise of AI-facilitated development to pouring accelerant on an already volatile debate. In the past, constraints on skilled engineering talent meant that most companies pragmatically chose to purchase ready-made solutions from SaaS vendors, particularly for non-core functions such as workforce planning or procurement. Hiring developers to construct such tools internally was widely perceived as an impractical allocation of limited resources. However, Friar argued that with today’s AI-assisted coding and automation tools, those traditional calculations are shifting rapidly. In other words, executives may soon question the necessity of purchasing off-the-shelf applications when artificial intelligence makes it both feasible and efficient to tailor bespoke systems directly in-house.
She illustrated this point with a compelling example: instead of OpenAI adopting generic planning or financial systems that may have been designed with other companies’ priorities in mind, her team can now employ AI-enabled agents to construct customized tools specifically oriented toward the unique requirements of OpenAI itself. The CFO underscored that this fundamental change could transform the very fabric of software development practices across industries, moving companies away from uniform, mass-market solutions toward highly individualized applications.
To highlight the tangible impact of this emerging trend, Friar shared an observation from her own professional environment. Within OpenAI’s finance division, team members are already developing their own agents and internal applications, harnessing AI to streamline routine workflows and enhance operational efficiency. The result is a finance group that is substantially leaner—about 18 percent the size of comparable teams at similarly scaled firms—because AI tools are amplifying productivity and minimizing the need for extensive human staffing. She celebrated this evolution enthusiastically, remarking that the ability of her team to constantly code and enhance their processes brings her immense satisfaction on a daily basis.
In conveying this perspective, Friar did more than describe a shifting balance in procurement decisions; she highlighted the possibility of an epochal transformation in enterprise software itself. If AI continues to empower organizations to design individualized systems tailored precisely to their needs, the SaaS industry may be compelled to reinvent its core value proposition. What emerges from this new era may look as different from today’s prevailing model as fast fashion looks from the traditional apparel industry it permanently altered.
Sourse: https://www.businessinsider.com/openai-cfo-warns-software-disruption-saas-2025-9
