How agentic AI workflows are compressing traditional SaaS models and reshaping the enterprise software landscape.
The artificial intelligence revolution isn't just creating winners, it's also displacing established players in ways that might surprise investors. While much of the market focus has been on AI infrastructure and the semiconductor boom, a quieter but equally significant transformation is happening in enterprise software.
The SaaS Compression Effect
Traditional Software-as-a-Service (SaaS) companies that dominated the 2010s are facing an existential challenge from what we call "agentic workflows": AI-powered systems that compress multiple software functions into streamlined, intelligent processes.
A recent example: Klarna, the Swedish fintech, dropped Salesforce's core CRM and consolidated data on an internal stack (including Neo4j) to power AI-driven interfaces and subsequently reported approximately $2M in savings. Importantly, the CEO later clarified that they did not "replace SaaS with a Large Language Model." and that the company still uses certain third-party tools. [1]
In a recent tweet, Klarna’s CEO, Sebastian Siemiatkowski, also said the company is moving away from tools like Jira and Bitbucket as they rebuild workflows around AI-assisted internal software, which he was careful to clarify was a unique direction taken by Klarna, but unlikely to be an industry-wide fait accompli. [2]
Klarna’s operational updates and search for SaaS savings aren’t unique. More broadly, companies are discovering they can build sophisticated workflows using natural-language interfaces atop their own data, cloud primitives, and focused AI services, reducing spend on overlapping licenses and complex consulting-heavy implementations. Even so, many firms will combine build and buy – in Klarna's case, they continue to use Slack (a Salesforce product) while retiring other elements. [3]
Portfolio Positioning: Ahead of the Curve
ROBO Global’s portfolio management team and strategic advisors have been anticipating this shift. A clear example of the team’s preparedness is that Adobe and Salesforce are no longer constituents of the ROBO Global Artificial Intelligence Index tracked by the THNQ ETF (as of June 30, 2025). Perhaps somewhat interestingly, both companies were index constituents at the original index inception in 2018, and both were removed from the index due to the team’s technical and market scoring processes. [4]
The Infrastructure vs. Application Divide
Today, we believe the exposure in the THNQ ETF reflects where AI value is accruing: roughly 65% infrastructure and 35% applications & services, consistent with recent third-party breakdowns of the index's approach. [5] Essentially - the tech stack enabling a more scalable, autonomous future.
What to watch next: We expect a step-function in the enterprise application layer over 2026-2027 as organizations move from pilots to scaled agentic systems. The eventual winners won't necessarily be yesterday's software giants; they'll be the teams that adapt to the inference economy and productize automation rather than defending legacy subscriptions.
What This Could Mean for Investors
The Double Threat: Traditional SaaS companies face pressure from two directions: (1) fewer seats if AI reduces human workflows, and (2) easier DIY builds that undercut pricey license stacks.
The New Winners: We believe that enablers of the DIY trend like cloud providers, data platforms and specialized AI services are positioned to benefit. Representative names currently in the THNQ index include Snowflake and Amazon (AWS). [6]
Looking Forward: We believe that the companies that thrive will be SaaS providers that embrace agentic workflows and sell automation outcomes, not just app access.
The Bottom Line
AI isn't simply stacking new winners on top of the old guard, it's reshuffling the software deck. For investors, that means looking past headline AI narratives to focus on which models remain defensible as automation eats integration layers and compresses the SaaS footprint.
This article represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any security in particular. This research is provided for educational purposes only.
Sources:
[1] Bloomberg, Jun 4, 2025; TechCrunch, Mar 4, 2025.
[2] CEO post on X, Aug 2025.
[3] SalesforceBen, Mar 14, 2025.
[4] VettaFi index constituent list.
[5] Kiplinger, Jul 3, 2025.
[6] VettaFi index constituents, Mar 31, 2025.
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