An Interview by 21st Century Business Herald｜The AI Era: Redefining the Landscape of SaaS Industry Evolution
In the age of AI, large models are moving from technological competition to practical application, real-world use cases are the true testing ground for AI models.
As Baidu’s founder, Robin Li, emphasized at this year’s WAIC(World Artificial Intelligence Conference), “Enterprises and users are shifting their focus from which models are the most powerful to which models can actually be applied in their own scenarios and, most importantly, what tangible value they can deliver.”
At the same time, the SaaS(Software as a Service) industry, which focuses on providing software and applications, is undergoing a transformatioin. With the rise of AI, will SaaS platforms be replaced? How can SaaS effectively integrate AI, adjust their business logic, expand boundaries, and avoid having their commercial value squeezed out?
However, many industry insiders have noted that, despite the rapid growth of LLMs( Large Language Models), SaaS suppliers are still being consistently chosen by customers. These SaaS companies are also proactively embracing and integrating AI tools into their offerings.
According to analysts, on the one hand, by incorporating LLMs, SaaS companies can deliver more intelligent and personalized services. On the other hand, the problems that LLMslarge can solve remain somewhat limited. Pure AI integration into enterprise services is still in its early stages and relatively shallow, often addressing single-use cases. SaaS companies will need to continue exploring ways to meet customers’ deeper business needs.
“When companies evaluate software, they prioritize how entensively and effectively it can enhance their business processes. The more deeply a product integrates with and supports business workflows, the greatr its value,” stated Li Guoxing, co-founder and CEO of MokaHR, in an interview with 21st Century Business Herald. Guoxing noted that enterprise service vendors have bulit solid technological barriers and benefit from first-mover advantages is this new wava of technological competition.
AI’s Undeniable Impact on SaaS: Shaping a New Competitive and Collaborative Landscape.
The rise of AI is set to fundamentally reshape competition within the SaaS sector, ushering in a long-term balance of cooperation and competition.
Embracing AI Across the Board
Amid the AI revolution that accelerated in 2023, no industry player can afford to remain on the sidelines.SaaS platform providers are taking a more proactive approach, recognizing AI’s transformative potentical. As a B2B digital service model, SaaS enables enterprises to achieve more scientific and efficient digital manangement of traditional internal processes through software solutions. LLMs also aim to streamline enterprise services by optimizing workflows and improving productivity with AI-driven solutions.
SaaS companies have been taking decisive steps in this competitive field.
In April 2023, DingTalk integrated the Tongyi LLM and subsequently partnered with six other major LLM providers, including MiniMax, Moonshot AI, Zhipu AI, OrionStar, 01.AI, and Baichuan AI, assembling a powerhouse of AI capabilities known as the “Seven Giants”.
Pioneering AI in HR SaaS: Moke Eva
On the innovation front, in June 2023, MokaHR, a rapidly growing HR SaaS provider in China, released the industry’s first propiretary AI Product, Moka Eva. This AI-native solution offers advanced features like intelligent resume screening, customized interview questions, automated follow-ups, and smart interview summaries. Moka Eva has been adopted by HR professionals across various companies, enhancing nearly 20,000 interviews to date.
AI in Healthcare and Enterprise Services: How SaaS Companies Like QingSong Health and Moka Are Leading Integration In the healthcare sector, QingSong Health has pioneered its vertical AI model, “Dr. GPT,” alongside AI-driven support tools throughout the industry chain. Meanwhile, numerous general-purpose AI model providers are entering the enterprise service market. In comparison, AI tools developed by SaaS platforms—already deeply embedded in enterprise services—are more attuned to business workflows.
A representative from a prominent SaaS company explained to 21st Century Business Herald that AI solutions from SaaS platforms emphasize real business data, enabling AI models to be trained in real-time and with high accuracy, directly addressing business needs. These tools are designed to streamline operations, production, and management processes.
“In the B2B space, the key focus is on application. Businesses seek innovations that can genuinely transform their operations rather than mere technical sophistication,” remarked Li Guoxing. He noted that optimizing business processes with AI requires a deep understanding of specific scenarios and seamless integration within workflows.
MokaHR has recently partnered with DingTalk to co-develop the “DingTalk HR Flagship Edition.” This collaboration merges expertise from both companies to create an intelligent, comprehensive solution that addresses the challenges faced by mid-to-large enterprises, such as system isolation and data silos in HR management.
“AI offers new interactive methods that automate long-tail features, simplify SaaS product usage, and enhance overall efficiency,”Guoxing added.
SaaS companies are clearly pursuing a path that aligns with AI integration, striving to harness this technology while dispelling any perceived “threat.”
Long-Term Competition: How SaaS and AI Are Shaping Future Business Solutions
Meanwhile, AI companies are also taking strides forward. At the recent World Artificial Intelligence Conference (WAIC), companies that once focused on competing in model development are now pushing the boundaries in industry applications. As the head of JD Exploration Research Institute noted, “General-purpose large models are merely seeds, while industry-specific applications provide the fertile ground for them to grow.”
Cloud service providers such as Tencent Cloud, Alibaba Cloud, and JD Cloud, along with AI innovators like iFlytek, Zhipu AI, Baichuan AI, 01.AI, and 4Paradigm, are delving into specialized vertical models to meet the specific needs of industry buyers.
In this new era of large models, has the competitive edge of SaaS in industry applications been overshadowed?
“Not really,” said a seasoned industry analyst. “SaaS vendors excel at refining business workflows, offering strategic guidance, and aggregating business data—all areas where large AI models are still striving to make headway.”
A representative from QingSong Health further explained: “Traditional SaaS providers have built deep industry expertise, stable customer relationships, and comprehensive solutions over years of development. Traditional SaaS platforms established well-rounded functionalities that meet basic needs across industries. While AI can introduce advanced features, it is unlikely to fully replace these time-tested services in the near future.” In fact, SaaS will likely evolve into a primary stage for AI application, moving towards ‘AI-powered SaaS’ rather than purely ‘algorithm-driven SaaS.’
An industry professional and current entrepreneur shared that while large models are currently seen as AI assistants in enterprise services—helping with routine tasks like work patterns and content creation—“we have yet to witness a transformative, game-changing shift. AI’s impact on business is still in its infancy, and we’re awaiting that singularity moment.”
Li Guoxing, echoed this view, stating that today’s AI solutions function more as assistants, enhancing processes in relatively straightforward applications. True integration with complex business processes will require further innovation and exploration.
“AI will undoubtedly create new opportunities within the SaaS industry, but it will not wholly replace it,” Guoxing noted. “Enterprise service scenarios will continue to be high-frequency, yet AI will make them more efficient. Successfully embedding AI into workflows to solve real business challenges is a priority for both SaaS and AI companies. This isn’t a straightforward task, and the companies that succeed will be those that can truly address these business challenges.”