I think traditional CRUD SaaS software will have more usage than ever. Between LLM function calling and small niche SaaS requirements, SaaS market will continue to grow.
But I think VC funding for them has mostly dried up because the moat is mostly gone given how much easier it will be to create SaaS.
Thus, I believe we will have smaller SaaS companies, more total users overall, and an overall bigger SaaS market.
I think it's similar to what is happening in the server CPU market. All the attention is given to Nvidia GPUs. No one really cares about server CPUs anymore. I think server CPUs will make a huge comeback because guess what the services that LLM function calling will run on? CPUs. The demand for CPUs will increase with AI, not decrease. LLMs + tool use is the model I expect in the next 1-5 years. I don't think LLMs will do it all. There is an old saying in software development: use the best tool for the job. Well, LLM inferencing won't always be the best tool for the job and LLMs should be smart enough to figure out which tool to use instead.