‘Services as Software’ emerges as AI transforms software landscape
NEW YORK, UNITED STATES — After two decades of Software as a Service (SaaS) dominance, artificial intelligence is creating a paradigm shift toward “Services as Software” — a model where AI leverages applications autonomously to deliver services rather than requiring human operators, reports Joe McKendrick of ZDNET.
AI becomes the default worker
“Historically, businesses bought software and hired human professionals to operate it,” explains Frank Diana, Tata Consultancy Services futurist. “AI is flipping that model. Increasingly, businesses will design their processes around AI from the start — not as an add-on, but as the default worker. This shift will impact nearly every function.”
The transformation is already underway, with an HFS survey revealing that 60% of 1,000 enterprises are looking to procure services as technology offerings, and the same percentage plan to replace some or all professional services with AI within three to five years, McKendrick notes.
Routine operations across IT maintenance, HR, procurement, accounting, and customer service are becoming easier to replicate using generative AI and agentic software, supported by cloud capabilities.
Professionals must adapt to new roles
This evolution demands significant changes from technology professionals. Diana told ZDNET that Services as Software “incorporates intelligent technologies such as AI, digital twins, predictive analytics, and autonomous systems, requiring professionals to pivot from infrastructure management to the orchestration of dynamic, adaptive services.”
To remain relevant, tech professionals must “embrace continuous learning, deepen their proficiency in AI and automation, and sharpen soft skills such as communication and problem-solving,” Diana advises. This approach will help them “position themselves as strategic enablers of business outcomes rather than merely technical facilitators.”
Despite increasing automation, human expertise remains crucial. According to McKendrick’s analysis, Diana emphasizes that “AI requires human governance to ensure fairness, compliance, and security,” and while AI “can process data, humans will provide context, vision, and leadership.”
HFS authors Saurabh Gupta and Phil Fersht highlight the integration challenges ahead: “Services and software people come from different worlds and speak different languages, but now these need to come together in a way we can all understand and develop. We can’t simply buy shiny new S-a-S solutions and plug them in like we did with an ERP solution.”
“This is where we need to define real business value, which can be delivered by AI technology and price according to that value and the desired outcomes we expect.”
