According to Microsoft, SaaS is transforming into the operating system for AI agents rather than becoming obsolete. McKinsey reports that 62% of organizations are experimenting with AI agents, but only 39% see an earnings impact. Gartner expects more than 40% of agentic AI projects to be canceled by end of 2027, while also predicting that 33% of enterprise software applications will include agentic AI by 2028, up from less than 1% in 2024. The toggle tax — employees switching between applications roughly 1,200 times per day, consuming nearly 9% of the workweek — highlights this friction point. Microsoft argues that the true value of SaaS has always been in the underlying data, governance and business logic, not the interface itself.
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