AI was supposed to power Canva’s next act. It also exposed software’s most expensive problem
Aug 15
1 min read
FORTUNE — This illustrates a broader dilemma spreading across the software industry: Companies can’t afford to sit out the AI boom, yet embracing it can undermine the lucrative economics of the businesses they are trying to protect.
“AI is making SaaS no longer a zero marginal cost solution, which has really been what I would call a lot of software’s secret sauce up until now,” Derek Hernandez, Pitchbook’s senior research analyst covering the intersection of SaaS and AI, told Fortune.
“People want a much more capable product and solution, which through today’s technology means cost of usage is becoming a really global challenge for all of these companies.”
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