PropTech, FinTech, and the AI Takeover: Why SaaS is No Longer Enough
What happens when software stops needing you? AI is already analyzing markets, approving loans, and managing properties—without a single click. In PropTech and FinTech, SaaS isn’t evolving. It’s disappearing.
In 2023, JPMorgan announced it had replaced 100 data analysts with an AI-powered trading algorithm. Around the same time, property management firms began using AI to automate lease negotiations, rent collection, and maintenance requests—tasks that once required entire teams. These shifts signal something much bigger: AI isn’t just making software more efficient; it’s replacing the need for human-driven software interactions altogether.
For two decades, the SaaS model has thrived by bundling tools, workflows, and expertise into user-friendly platforms. Now, AI is quietly dismantling that foundation. A recent analysis by a16z highlights how AI-driven automation is replacing traditional software workflows, turning software into a background process rather than a user-facing tool. McKinsey predicts that AI-driven automation could reduce enterprise reliance on traditional SaaS by 50% within the next five years, as businesses increasingly integrate AI agents directly into their operations
The winners in this shift will be those who embrace AI as the product, not just a feature. The losers will be those who assume SaaS is immune to disruption.
AI as the Co-Pilot (Today)
Right now, AI is making SaaS products better—but it’s also setting the stage for their decline.
Real Estate Investment: Skyline AI analyzes billions of data points to predict property values, rental trends, and market risks, reducing the need for human analysts.
Banking and Lending: Upstart’s AI-driven credit models evaluate borrowers more accurately than traditional risk assessments, making human underwriters increasingly redundant.
SaaS companies love this phase. AI feels like an enhancement, not a threat. But beneath the surface, something fundamental is shifting: users are relying on AI, not the software itself, to get things done.
AI Becomes the Decision-Maker (Next Stage: 12–24 Months)
The next shift happens when AI stops being a tool and starts making decisions independently. Instead of a real estate analyst pulling up market comps, an AI agent will present a fully optimized portfolio. Instead of a CFO navigating financial dashboards, an AI will manage cash flow and adjust forecasts automatically.
Example: AI in Loan Underwriting – Companies like Zest AI and Upstart are replacing traditional SaaS underwriting platforms with AI models that assess risk and approve loans autonomously.
Example: AI in Property Valuation – Blackstone-backed AI models are now identifying high-value real estate deals faster than human analysts, shifting investment strategies.
At this point, SaaS companies begin losing control. If an AI agent can interact directly with APIs and databases, why log into a SaaS dashboard at all?
Software Becomes Invisible (Long-Term Impact: 2–5 Years)
Eventually, AI will make SaaS interfaces irrelevant. The very premise of SaaS—bundling tools, workflows, and expertise into a single platform—will collapse.
Instead of logging into a property management system, AI will handle lease renewals, maintenance schedules, and rent optimization behind the scenes.
Instead of manually running financial reports, AI will monitor performance in real-time and make automated adjustments.
The AI will be the interface, extracting insights, making recommendations, and executing tasks without human intervention.
Example: AI-Driven Hedge Funds – Firms like XTX Markets are already run almost entirely by AI, proving that software interfaces aren’t needed when AI can make decisions directly.
At this stage, SaaS will no longer be a product—it will be a set of back-end APIs that AI agents tap into as needed.
The Benefits and Risks of Skipping the Software Step
AI allows businesses to bypass the traditional software interaction step and focus only on outcomes. But while this shift brings undeniable advantages, it also introduces new risks.
Pros of AI Taking Over Software Workflows
✅ Speed & Efficiency – AI automates decision-making, reducing the time spent on repetitive tasks.
✅ Accessibility – Complex financial and real estate insights become available to anyone, not just experts.
✅ Customization – AI-driven solutions adapt in real time without forcing users into rigid software interfaces.
Cons of AI Replacing Traditional Software Interactions
⚠️ Loss of Human Oversight – Just as GPS made people worse at reading maps, AI could weaken professionals’ ability to think critically about business decisions.
⚠️ Black Box Decision-Making – AI models operate in ways that aren’t always transparent, increasing the risk of biased or flawed decisions.
⚠️ Market Commoditization – If every investor, banker, or real estate firm uses AI for optimization, how do companies differentiate?
The shift to AI-driven automation is inevitable, but businesses must be mindful of these risks.
How SaaS Companies Can Adapt
For SaaS vendors, this isn’t the end—if they evolve. Companies that embrace AI as the core product will thrive. Those that cling to outdated interfaces will fade away.
🔹 Shift from SaaS to AI-as-a-Service (AIaaS) – Instead of selling user-friendly interfaces, offer AI-driven automation tools that integrate directly into business workflows.
🔹 Move to API-Based Pricing – As AI agents replace human users, charging per user or per seat won’t work. Companies must shift to API-based pricing or performance-based fees.
🔹 Enhance AI Transparency – Businesses will demand AI models that explain their decisions, ensuring compliance and trust. SaaS companies that provide transparency features will have a competitive edge.
🔹 Leverage AI for Hyper-Personalization – AI should not only automate but also adapt dynamically to each user’s needs, delivering more value than generic SaaS solutions ever could.
The question isn’t whether AI will replace traditional SaaS interactions—it’s how quickly SaaS companies can reinvent themselves before AI makes them obsolete.
What’s Next?
The SaaS model isn’t disappearing overnight, but its core assumptions are crumbling. The idea that humans will log in, click buttons, and navigate workflows is already fading.
🚀 For SaaS incumbents – The time to pivot is now. Companies must shift from user-driven software to AI-powered automation or risk being left behind.
🚀 For startups – The barriers to building AI-driven solutions have never been lower. Businesses that harness AI-first strategies will dominate the next wave of PropTech and FinTech.
🚀 For enterprises – AI integration isn’t optional. Companies that embed AI-driven automation into their workflows will outpace competitors still stuck in the SaaS era.
The revolution isn’t coming—it’s already here.
💬 My Thoughts
SaaS isn’t evolving—it’s dissolving. As AI takes over workflows, decision-making, and automation, software will fade into the background, operating silently behind the scenes. The companies that recognize this shift and embrace AI as a product—not just a feature—will lead the next era of PropTech and FinTech. Those that don’t will be left clinging to interfaces no one needs anymore.
xoxo,
Maximillian Diez, GP, Twenty Five Ventures
P.S. Stay with me on this journey.
If nothing else, thanks for reading.
