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A new term has recently emerged in the business world:
**Service-as-a-Software** a.k.a. **SaaS 2.0**
In general, some authors of articles promoting this term assume that the new and rapidly growing possibilities offered by AI and automation mean that problems that were previously too individual or support-intensive can now be tackled. The focus is on (human) service on the customer side and the background processes in the company are fully AI-supported and automated. Unlike traditional SaaS, no software is primarily offered here as self-use.
In other words:
**"Service as a Software" (SaaS 2.0)** is a new type of business model that mixes software automation with real human support. Unlike traditional SaaS, which provides self-service tools for users to solve problems on their own, SaaS 2.0 focuses on delivering results by combining technology with human expertise.
In this model, software handles repetitive tasks like data processing, scheduling, or matching, while humans step in to provide guidance, handle exceptions, or solve complex issues. This approach is often called **Human-in-the-Loop** because humans are actively involved in key parts of the process, ensuring a personalized and empathetic experience for the customer.
SaaS 2.0 is especially useful in industries like healthcare, education, or elderly care placement, where trust and personalization are critical. For example, a traditional SaaS might offer a tool to search for care homes, while a SaaS 2.0 solution would also provide a care consultant to help families make the best choice. In this case no traditional marketplace is needed where the supply and demand side used to be scaled simultaneously. Instead, an AI can now search for the best match for a place in a retirement home and a human in the loop can be the external face for the customer and the retirement homes and thus act as an agent.
By automating routine tasks and using humans for high-value touchpoints, SaaS 2.0 delivers better outcomes, builds stronger relationships with customers, and stands out from traditional software that relies only on automation.
What do you think about the potential of this concept?
Top Comments
This post frustrated me too much to rebuke, so I had GPT do it for me: First, let’s address the most glaring issue: **the misuse of the term "SaaS."** Software-as-a-Service (SaaS) is a well-defined business model where software is centrally hosted and licensed on a subscription basis. It focuses on delivering software **as a utility**—self-service, scalable, and cost-effective—designed to minimize the need for human intervention. The concept hinges on **user empowerment through technology**, not on hybridizing software with human services. What this so-called "SaaS 2.0" describes is not a new iteration of SaaS—it’s an entirely **different business model** trying to ride on the coattails of SaaS’s success. The addition of human service to AI-driven processes sounds more like a **Managed Service** or **Human-in-the-Loop solution**, which has existed for decades under various names, especially in consulting-heavy industries. # Specific Critiques: 1. **Misunderstanding SaaS Principles** SaaS is designed to **reduce human dependency** by automating workflows, not to introduce more of it. Adding human layers for "personalisation and empathy" moves away from SaaS’s core efficiency. If you need humans actively involved, you're not scaling the software—you’re scaling **services**, which is operationally intensive and far less scalable. 2. **Buzzword Overload Without Substance** The phrase "Service-as-a-Software" is nonsensical. Are they implying the **service itself is now software**? If so, how is that different from traditional SaaS, which already automates services like accounting, CRM, or project management? This term feels like an attempt to rebrand concepts like **AI-augmented service delivery**, but it muddles more than it clarifies. 3. **Ignoring Established Models** What they describe aligns with **BPO (Business Process Outsourcing)** with a sprinkle of AI or even **PaaS (Platform-as-a-Service)**, depending on implementation. Neither of these frameworks requires rebranding SaaS into "SaaS 2.0." The proposed model is simply **tech-enabled consultancy** with AI, which is not groundbreaking. 4. **AI and Automation Aren’t New in SaaS** AI-driven automation is already baked into SaaS solutions—think of CRMs like HubSpot or analytics tools like Tableau using machine learning to provide insights. The true innovation in SaaS lies in better self-service, not in bundling humans back into the process. 5. **Industries Like Healthcare or Education Already Operate Like This** The examples provided (e.g., matching families to care homes) are typical **human-driven, tech-enabled services** and have been for years. Care consultants or education advisors using search tools isn’t new; the only difference now is AI makes the software slightly smarter. That doesn't warrant redefining the SaaS model—it’s just **integrating tools into existing services.** # Why It Falls Apart: * **Scalability Problem**: Adding human touchpoints severely limits scalability, a hallmark of true SaaS. * **Cost Problem**: The "human-in-the-loop" model inherently increases operational costs, negating one of SaaS’s primary selling points: cost efficiency. * **Value Problem**: Customers seeking SaaS solutions want **empowerment**, not dependency on human assistance. This model flips the value proposition on its head. # Final Nail in the Coffin: Calling this "SaaS 2.0" is marketing drivel. It’s neither a new version nor an evolution of SaaS; it’s an awkward attempt to bolt legacy service delivery onto AI-driven platforms and slap on a catchy label. The tech industry doesn’t need a rebranding exercise for something that already has names—AI-powered Managed Services, Human-Augmented Solutions, or just plain consulting with better tools. SaaS remains exactly what it’s always been: **software that scales by being self-service, not hand-holding customers through it.**
aka fiverr 😂
Overall I think it has potential, Using your example of using ai to recommend a care home, I don't think you can use chatgpt directly, so for example suppose you are looking for a nursing home for your grandfather... who only speaks german, and has mild dementia and needs help reminding him to take his meds for his other conditions which are manageable. He watches a lot of TV but still needs to socialize a lot. If someone brought me something like this, and said lets be partners, my first question wouldn't be how do we build the software, my first question would be how do we get the high quality data we need at a reasonable price, and you have some choices which ai could help with (scraping reviews, data brokers, ai driven email campaigns), and you could maybe make the interface in the form of a chat, but you are still looking at a lot of custom software processes that out of the box ai can't handle.
SaaS 2.0 sounds like a fascinating evolution, especially with how AI and automation can free up humans to focus on more complex, personalized tasks. The concept of blending human expertise with technology could definitely stand out in sectors where trust and relationships are key, like healthcare or education. The key challenge will be ensuring the balance between AI and human support remains seamless for customers. If done right, it could provide a more empathetic, efficient, and scalable experience compared to traditional SaaS. Excited to see how this evolves!
As a senior b2b saas exec (gtm) for over a decade, there definitely is an opportunity IF you can find the niche/hyper niche where you can win in. The chances of success will be higher if you are able to narrow down based on your area of expertise. E.g.: If you are an accountant in a pharmaceutical firm who works a lot with pharma sales expense management you could offer a customized AI Agent (with human in the loop) for an expense management program in the pharma sales niche. This is an example, of course. I have no experience in pharma sales.
