I joined another BCG alumni call this morning, this time on the current state of AI + Software.

I’ve written a few times about how these calls have always been a steady, calming voice amid hysteria or catastrophic narratives.

Today was no exception.

The prevailing dramatic narrative is:

• SaaS is dead
• AI is the one killing it
• All white-collar labor will be decimated.

The reality is, as usual, much less extreme.

Summary:

• SaaS returns will be lower, but core platforms are durable
• AI opportunities are much more nuanced
  • General purpose agents (Claude Code, Lovable, etc) are definitely experiencing initial hypergrowth
  • Smaller vertical apps will be the ones finding true disruption opportunities in medium-term
  • Large model companies will partner with enterprise for custom builds on a gradual basis
• Roles will be redefined, not replaced
  • Even software engineers commonly believed to be the canary in the coal mine — ”good” engineers are in even more demand than a year ago

But probably the most prominent theme of the talk was that while SaaS isn’t dying, SaaS companies do themselves no favors by focusing on incremental improvements to their platforms rather than genuine innovation.

And even further, startups are finding advantage because they are laser-focused on solving first-principles pain points rather than narrow optimization.

So what does this mean for us as consultants?

Even outside the realm of AI or software, it prompts a bit of an existential check-in on the services we provide our clients:

Are we helping clients get 1%, or even 10% better at what they do already?

OR

Are we helping truly transform the way they think about and execute their business?

For example:

If you’re an executive coach - are you helping someone get through the week?

Or are you aligning their mindset to larger goals.

If you’re a marketing consultant — are you helping people tweak their website copy?

Or are you redefining their external messaging to something bigger.

If you’re an advisor on retainer — are you approaching your engagement passively, fielding questions as they come?

Or are you actively inspiring the founder and leadership team to move in a bolder direction or pace.

Clients hire expensive talent like you when they realize they’re stuck and need outside help.

Even just by initiating a conversation, they’ve already created the space for you to make a big impact, even if you're solo.

So, pass on the baby-step work and mindset.

You can instead inspire the bigger transformation.

In fact, they’re inviting your leadership to do so.

💡

-Wes