×
Survey: 60% of enterprises plan to replace professional services with AI
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

Artificial intelligence is fundamentally transforming the traditional Software as a Service (SaaS) model by inverting the relationship between software and services. This emerging “Services as Software” paradigm positions AI as the primary worker rather than a tool for humans, with software itself becoming autonomous in delivering services. This shift represents a profound evolution in how businesses consume technology, with 60% of enterprises already looking to procure services as technology offerings and planning to replace human professional services with AI within the next few years.

The big picture: AI is creating a new technology paradigm called “Services as Software” that inverts the traditional SaaS model by making software the worker rather than just a tool.

  • For the past two decades, Software as a Service has been central to the technology universe, with applications accessible via the internet, but AI is now turning this model upside down.
  • Instead of humans operating software, AI is increasingly becoming the default worker that autonomously leverages applications to deliver services.

Key details: Industry research shows that businesses are rapidly moving toward this new model, with significant implications for professional services.

  • An HFS survey reveals 60% of 1,000 enterprises are already looking to procure services as technology offerings.
  • The same percentage plan to replace some or all of their professional services with AI within the next three to five years.
  • Routine functions like IT maintenance, HR, procurement, accounting, and customer service are becoming easier to replicate with generative AI and agentic software.

What they’re saying: Technology experts highlight this fundamental shift in how businesses approach software implementation and service delivery.

  • “Historically, businesses bought software and hired human professionals to operate it,” explains Frank Diana, Tata Consultancy Services futurist. “AI is flipping that model.”
  • Diana further notes: “This transformation isn’t just about automation — it’s about redefining how businesses consume and deliver services.”
  • HFS authors Saurabh Gupta and Phil Fersht point to how tasks that once required teams of specialists “is increasingly being handled by AI-powered systems capable of executing tasks autonomously.”

Why this matters: This shift represents a fundamental evolution in business technology consumption that could dramatically reshape enterprise operations and the IT services industry.

  • Businesses are increasingly designing their processes around AI from the start, treating it as the default worker rather than an add-on capability.
  • The transition to AI-powered autonomous services will impact virtually every business function, potentially reducing the need for certain types of specialized human labor.
Forget SaaS: The future is Services as Software, thanks to AI

Recent News

Two-way street: AI etiquette emerges as machines learn from human manners

Users increasingly rely on social niceties with AI assistants, reflecting our tendency to humanize technology despite knowing it lacks consciousness.

AI-driven FOMO stalls purchase decisions for smartphone consumers

Current AI smartphone features provide limited practical value for many users, especially retirees and those outside tech-focused professions, leaving consumers uncertain whether to upgrade functioning older devices.

Copilot, indeed: AI adoption soars in aerospace industry

Advanced AI systems now enhance aircraft design, automate navigation, and predict maintenance issues, transforming operations across the heavily regulated aerospace sector.