Correct me, but if two people create a SAAS that can replace a 50 people SAAS, compete on price and the competitor is forced out of the market, wouldn’t this show up as an reduction in GDP? Efficiency (GDP/time_worked) should be up though, and AFAIK it isn’t.

2 people are now producing what took 50 people previously.

What are the 48 other people doing now? Presumably some other economic activity.