Is the share market headed toward a ‘SaaS-pocalypse’ – and what would that mean?

The Guardian World

by Jonathan Barrett Business editor

February 20, 2026

AI-Generated Deep Dive Summary

The global software-as-a-service (SaaS) sector is facing unprecedented challenges as investors grapple with concerns over the potential impact of artificial intelligence (AI). The term "SaaS-pocalypse" has emerged to describe the recent dramatic sell-off in SaaS shares, driven by fears that advanced AI could render traditional software redundant. This shift has wiped billions off the value of tech companies and raised questions about the future of the industry. The article highlights how years of speculation around AI's market impact have now evolved into a new narrative: what if AI's capabilities are as revolutionary as feared? Investors are increasingly worried that AI tools, which can perform tasks previously handled by software, could disrupt SaaS businesses. This has led to a significant pullback in investments, with some analysts warning that the sector may be on the brink of a crisis. While not all SaaS companies are at risk, the article suggests that those reliant on repetitive, rule-based functions—such as customer relationship management (CRM) tools—are particularly vulnerable. However, it also notes that AI could create new opportunities for innovation within the industry, potentially leading to hybrid models where software and AI work in tandem. The broader implications of this shift are significant for both the tech sector and global markets. If AI continues to advance at its current pace, it could reshape industries beyond SaaS, prompting businesses and investors to rethink their strategies. The article underscores the importance of adaptability in navigating this evolving landscape, emphasizing that while risks loom large, they also present chances for growth. Ultimately, the

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Originally published on The Guardian World on 2/20/2026