Larry Ellison: AI Will Not End the Era of Software
The tech industry has recently been buzzing with the threat of the so-called "SaaSpocalypse"—the idea that the rise of artificial intelligence will allow companies to build their own software independently, potentially undermining the traditional Software as a Service (SaaS) model. However, Oracle co-founder Larry Ellison disagrees with these predictions, arguing that AI does not signal the end of software, but rather its next phase.
The Evolution of Software
Speaking at Oracle’s annual AI World conference, Ellison stated that AI will enable companies to create much more complex and comprehensive applications. He argued that current programs, despite their popularity, are not yet "finished" because they often only partially automate business processes, forcing companies to rely on additional third-party tools.
"For the first time in history, we can actually finish the development of applications if we build them specifically for industries," Ellison noted. He highlighted the healthcare sector, where software adaptation is notoriously difficult due to strict regulations and geographical nuances, as an area where AI will significantly simplify the process.
From Interface to Functionality
In Ellison’s view, AI will fundamentally change how we interact with digital products. He believes that complex menus and multi-step dashboards will soon become a thing of the past. Users will no longer require special training to use an application, as any request will be executed through natural language.
This trend is echoed by other senior Oracle executives. For instance, NetSuite COO Brian Chess believes that business software may eventually become "invisible" to the user. If a client prefers to access NetSuite functionality through interfaces like ChatGPT or Slack rather than logging directly into the platform, that is acceptable to the company. The primary value will no longer be the visual interface itself, but the data and processes that the software manages.
What This Means for Business
Although Oracle’s share price rose by approximately 14% during the conference, the company remains below its peak levels from late 2025. Nevertheless, Ellison’s optimism underscores that tech giants are preparing for a future where software carries more functional weight than formal structure.
For businesses relying increasingly on cloud services, these changes mean that the primary criterion for choosing software will not be interface simplicity, but rather the system's integration capabilities and the quality of its AI-driven automation. The tech world is entering an era where programs do more than just store data; they actively participate in decision-making.