I would not invest in SaaS companies right now that are not naturally able to switch to serving agents.

I think the seat-based SaaS company is in huge trouble in terms of public market valuation. They will not command 80+ P/E anymore. In fact, I expect them to be on the lower end of P/E industries, something below 20.

The article is right that there are only 2 paths but I'll name the two paths in simpler terms:

1. You have great ideas for growth and this newfound productivity allows you to achieve those ideas. You don't have to do layoffs.

2. You layoff most of your company, put the company on a lower-growth path but your margins increase substantially due to AI productivity.