- Breaking The Mold by Deric Yee
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- SaaS Is Dead? My Bold Predictions for 2025 & Beyond
SaaS Is Dead? My Bold Predictions for 2025 & Beyond
The Future of SaaS: What’s Coming in 2025 and Beyond?
The SaaS industry is changing at a rapid pace. Just when you think you’ve mastered one trend, another wave of disruption emerges.
If you’re running a SaaS business or planning to launch one, staying ahead of these shifts is crucial.
The landscape in 2025 and beyond will look very different, and the winners will be those who anticipate and adapt early. Let’s dive into five major trends shaping the future of SaaS.
Google’s Organic Search Traffic Is Declining
For years, SaaS companies have relied on SEO as a primary growth strategy. But this approach is becoming less effective.
Google’s organic search traffic is expected to take a significant hit, with a projected drop of at least 15%. The reason? Artificial Intelligence.
AI-powered search features, like instant answers and AI-generated summaries, are reducing the need for users to click through to websites.
Instead of scrolling through search results, users are getting what they need directly from Google’s AI snippets.
This means SaaS businesses can no longer rely solely on SEO to drive traffic and must explore alternative channels like partnerships, integrations, and community-driven growth strategies.
Google’s Revenue Model Is Under Threat
Google’s advertising business is built on search traffic, and with fewer people clicking on ads, revenue is bound to take a hit. As more users turn to AI-powered tools like ChatGPT and Claude for direct answers, traditional search ads are becoming less effective. Google has yet to figure out how to effectively monetize AI-generated results, which could lead to a decline in ad revenue. This shift presents a huge opportunity for new advertising ecosystems to emerge. SaaS founders who build tools to optimize, manage, and monetize these new ad platforms could be at the forefront of the next big wave in digital marketing.
AI Will No Longer Be a Differentiator
Right now, “AI-powered” is a major selling point. But as AI becomes more commonplace, this branding strategy will lose its effectiveness.
AI will become as standard as electricity—no one brags that their product runs on electricity because it’s expected.
Instead of focusing on AI as a feature, SaaS businesses will need to emphasize the real-world outcomes their products deliver.
Terms like “smart automation” and “predictive insights” will replace generic AI marketing language. Just like how “blockchain” and “crypto” lost their initial hype due to overuse, AI will soon follow.
The companies that succeed will be the ones that shift from promoting AI as a concept to demonstrating how their technology actually improves efficiency, decision-making, and productivity.
Dependence on Third-Party Platforms Will Become Riskier
Many SaaS businesses are built on top of platforms like Google, Amazon, or Shopify. While these platforms provide access to large customer bases, they also come with a major risk: unpredictability.
Companies that rely too heavily on one platform can see their revenue disappear overnight due to policy changes, algorithm updates, or shifts in pricing structures.
I’ve seen founders build entire businesses around Google integrations, only to lose nearly half their revenue after a single policy change.
To mitigate this risk, SaaS businesses must focus on building direct relationships with customers, diversifying their acquisition channels, and creating standalone value that isn’t dependent on a single platform.
The companies that own their customer relationships will be the ones that thrive in the long run.
AI Interfaces Will Be Filled with Ads
Right now, AI tools like ChatGPT offer a clean, ad-free experience—but that won’t last. AI platforms need to generate revenue, and advertising is the easiest way to do that.
Soon, we’ll start seeing ads integrated into AI interfaces, just like we see in search results today.
The early days of any new ad ecosystem are chaotic—just look at how clunky Facebook Ads and LinkedIn Ads were when they first launched.
This presents a massive opportunity for SaaS businesses to create tools that help companies navigate and optimize AI-driven ad platforms.
Businesses that move quickly to build solutions for managing AI-based advertising will be well-positioned to capitalize on this shift.
Final Thoughts
The SaaS landscape is evolving faster than ever, and those who anticipate change will have a competitive edge. Google’s organic search traffic is declining, forcing SaaS companies to rethink their acquisition strategies.
Google’s ad revenue is under pressure, creating opportunities for new advertising ecosystems. AI is becoming so widespread that it will no longer be a meaningful differentiator.
SaaS businesses that rely too heavily on third-party platforms will face increasing risks. And finally, ads will inevitably take over AI interfaces, creating new markets for ad tech solutions.
The future of SaaS isn’t about following trends—it’s about staying ahead of them. Are you ready?
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