Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: Databricks CEO says AI Agents threaten SaaS, some tech companies will be wiped out in Simple Termsand what it means for users..
The AI race is no longer just about chatbots answering questions. According to Databricks CEO Ali Ghodsi, the real change is now coming from AI agents that can actually perform tasks — from building databases to analysing business data — with minimal human involvement. And as these agents become more capable, parts of the SaaS industry could face serious pressure, with some companies unlikely to survive.
In an interview with CNBC Television, Ghodsi revealed that 80 per cent of databases created on the Databricks platform are now being built by AI agents instead of people. That data point, he said, is one of the clearest signs yet that AI adoption is moving beyond experimentation and into real operational workflows.
It is not limited to tech firms. Enterprises across industries are using AI tools to build software in-house. Knowledge workers are increasingly relying on natural language interfaces to interact with data, cutting down work that previously took days.
Ghodsi shared a personal example. At the end of a fiscal quarter, he noticed a spike in usage on the company’s platform. Earlier, such a query would have required back-and-forth with the finance team. Instead, Databricks’ AI tool generated visual reports and insights almost instantly. For him, that change suggests how agents are changing day-to-day decision-making.
Why SaaS companies could be at risk due to AI
For decades, SaaS firms have benefited from two strong advantages – their user interfaces and their “systems of record” databases. Millions of users were trained on specific dashboards and workflows, making it difficult for competitors to replace them. Changing databases was expensive and risky.
That advantage is now being questioned. If users can simply ask questions in English and receive structured answers, the traditional interface becomes less important. On the backend, new databases are being designed specifically to serve AI agents rather than human operators.
This change could reduce the protective barriers around many SaaS companies. Ghodsi said some firms may struggle if they focus only on protecting existing revenue models, such as seat-based pricing, instead of redesigning products around AI. Those that fail to adapt, he warned, risk being “wiped out.”
“Some of these SaaS companies are going to be wiped out because they are going to be lazy. They are going to focus on short-term revenue, and they are going to protect their existing revenue, maybe raise the price, not let people access their data, not innovate just to get short-term benefits. And then in a year or two, those businesses will go out of business,” he said.
At the same time, he emphasised that not all companies will lose. Established players with strong customer bases and resources can use AI to reinvent themselves if they move quickly.
Ghodsi explains AI is also changing costs for SaaS and cloud companies
Beyond product disruption, AI is also changing cost structures. Ghodsi pointed out that companies are using AI to reduce vendor expenses. Tasks such as financial research, audit preparation and data analysis can now be completed in minutes instead of days.
For example, AI agents can analyse earnings calls across competitors, compare trends and produce structured summaries rapidly. Human professionals then refine the insights rather than starting from scratch. As these efficiencies grow, businesses are questioning why they should continue paying high fees for work that AI can partly automate.
That trend is adding uncertainty to a sector long seen as stable. SaaS was often viewed as a predictable, recurring-revenue model. Now, investors are forced to evaluate which companies can innovate and which may fall behind.
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