I’ve seen a lot of talk about a “SaaS-pocalypse”—the idea that AI will make traditional software obsolete by allowing businesses to replace entire software platforms with increasingly sophisticated AI tools. I don’t buy it.

AI is absolutely disrupting SaaS, but I believe it is far more disruptive to how software companies create, price and defend value than to the underlying need for software itself. It’s forcing companies to rethink what software is worth, how customers should pay for it and what makes a product difficult to replace.

Proptech is no exception. Property management is a complex, highly interconnected business where software has to do more than perform isolated tasks. As AI makes individual features easier to replicate and automates more of the work once performed by people, the most successful SaaS companies will be the ones that deliver measurable value, solve broader workflows, maintain trusted customer relationships and become deeply embedded in how businesses operate.

After almost two decades spent building property management software, I’ve seen firsthand how these dynamics play out. Here are four shifts I believe will shape the next generation of proptech.

From seats to outcomes

For decades, the “seat” has been the unit of value in SaaS. If a company had 1,000 employees using a platform, the SaaS vendor sold 1,000 licenses. But AI is challenging per-seat pricing as a measure of value. If one AI agent can perform the work of 10 customer service representatives, charging per seat can actually penalize SaaS companies for making its customers more efficient, effectively engineering their own revenue decline. 

This is driving a shift toward usage- and outcome-based pricing. Companies like Intercom and Zendesk now charge for automated resolutions rather than just per human login. And that shift is likely to continue into proptech. If software enables one property manager to efficiently oversee 500 units instead of 250, the value isn’t that more employees are using the platform. It’s the additional units managed, transactions processed, payments collected and administrative work eliminated.

I’ve seen this firsthand at my property management software company. We’ve never charged customers per user or per seat, so a property management company can add employees without seeing its software bill increase simply because more people need access. A customer might be an independent landlord or a property management firm with 50 employees, but what matters isn’t how many people log in—it’s the work they’re able to accomplish. 

From point solution to platform

In the pre-AI era, a SaaS company could build a multi-million-dollar business around a point solution: one tool that did one specific thing exceptionally well, like transcribing meetings or formatting documents. Generative AI is making many of these features increasingly commoditized. If a generic AI tool can replicate a software’s core functionality with a single prompt, that functionality is no longer much of a moat.  

For proptech, that means the opportunity is shifting from solving one pain point to owning the broader workflow. For example, an AI tool that generates a property listing is easier to replace than a platform that manages the entire process from listing and tenant screening to leasing and rent collection. The more deeply software is embedded in a customer’s day-to-day operations, the harder it is to replace with a standalone alternative. 

From automation to human expertise

As routine interactions become increasingly automated, knowledgeable human support becomes more valuable—not less. AI can handle basic queries, but companies, including mine, are doubling down on high-touch, real-life customer service. In an era where customers can get instant answers from a chatbot, having direct access to a real person who understands their business, can navigate complex problems and take ownership of the solution becomes a premium differentiator—one that builds trust and loyalty in ways AI cannot replicate.

This is especially true in proptech, where software touches high-stakes decisions involving people’s homes, investments and livelihoods. We consistently hear from customers that having direct access to a knowledgeable human who cares about their problem and knows how to help them navigate the software is one of the reasons they stay with us for the long haul. 

From software to infrastructure

The most successful SaaS companies are becoming the connective tissue of their sectors—connecting with the other systems their customers rely on to become infrastructure, not simply software tools. When a platform is the bridge between a company’s finances, supply chain and regulatory compliance, it becomes embedded in the business and far too sticky to swap out for a newer, AI-only alternative.

At my company, we’ve seen property managers start using software for one task, but over time it becomes the place where they manage their properties, communicate with tenants, collect rent, manage maintenance and run their business. At that point, replacing the software isn’t a matter of swapping out one feature for another—it means disrupting an entire operating system the business has built around. That level of integration and familiarity is difficult for a standalone AI tool to replicate.

The “SaaS-pocalypse” may change the proptech landscape, but if you ask me, it won’t eliminate the need for proptech. Property management will always require systems that can handle complex workflows, connect critical data, protect sensitive information and support the people running the business. 

AI will change what software can do. The opportunity for proptech is to use that technology to make the entire business of managing properties more efficient, connected and human.