Tuesday, October 14, 2025

Ruminating on 'Service as Software'

The evolution of Agentic AI has ushered in a new paradigm called 'Service as Software'. The following article lays down the core concept very succinctly:  https://www.thoughtful.ai/blog/service-as-software

Snippet from the article:

Service as a Software (SaS) is a business model where the value isn’t the software itself, but the complete service it delivers through automation. Instead of selling access to tools, companies sell the outcome those tools create. In SaS, the software operates in the background while AI Agents perform the actual work—handling tasks, making decisions, and producing results without human input. This removes the need for the customer to operate the software, train staff, or manage workflows—the outcome is what’s sold, not the tool.

The biggest advantage of this paradigm shift towards Digital Labour is infinite scalability & real-time agility. Traditional services scale linearly—hire more people for more demand, pray for retention. SaS agents? They ramp up instantly. Seasonal surges in e-commerce support? No frantic recruiting. Project deadlines looming? Agents multiply efforts without overtime. A customer support team, for instance, swaps human shifts for AI deployments that triage queries, resolve 80% on the spot, and escalate the rest seamlessly—slashing costs while boosting satisfaction. Pricing seals the deal: Move beyond flat fees to outcome-based models. Charge per resolved ticket, qualified lead, or audit completed. 

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