The SaaS Trap: Why AI's Productivity Boom is a Deflationary Death Spiral for Incumbents

If you have been following my prior articles and videos at retailtrader.ai, you know we’ve been tracking the structural shifts beneath the AI hype. Recently on CNBC, ServiceNow’s CEO touted that AI is handling massive chunks of customer service workflows, suggesting companies won’t need to backfill human employees.

Wall Street is cheering this as a massive productivity tailwind. I am looking at it and seeing a deflationary trap that will eventually gut the legacy SaaS business model.