My thoughts are sort of similar. AI/LLMs have allowed many of the typical SaaS customers to think that maybe they could do at least some of this work themselves, and get better results.

For most companies this was always true, but LLMs have given them the confidence to actual start writing more software in house. The SAPs of the world have nothing to fear, companies aren't going to vibe code a CRM, but they are going to be able to more easily write integrations. At a previous job we frequently had bills for €10.000 for small integrations into our ERP, but once we figured out the API and gained more confidence in our abilities, all those integrations got pulled in house.

If your SaaS platform provides actual benefits, then you don't need to worry. If your business in writing integrations for other companies into platforms you don't own, yes, AI is going to hurt your business.

This should have happened regardless of AI though. The idea that companies (over a certain size, e.g. ~20 people) doesn't have a least on developer employed, regardless of industry always seemed like a missed business opportunity. We wrote so many tools for sales, warehousing, customer service and accounting and it's hard to imagine the business functioning without those tools. I might have spend two weeks writing a tool, but if it saves sales 20 hours a week punching in orders, we get a positive return in a month.