Observation #1: Will AI’s Continuous Evolution Lead to the Demise of SaaS Companies?

No.

Recent SaaS market cap drops have been driven by AI evolution—specifically, Anthropic’s launch of Claude Cowork, which gives Claude direct access to files, folders, and office tools like Excel and PowerPoint. This triggered market panic. But emotion outweighs reason—calm down and think, and the essence isn’t hard to see.

1. Tools will iterate, but use cases won’t disappear—we still need to solve problems, we just have different tools. The microwave didn’t put chefs out of work; it let more people cook for themselves.
2. Technological revolutions don’t just reshape existing demand; they spawn massive new demand. The Industrial Revolution was the same, and so is AI. This is history repeating, not an overthrow of the underlying logic.