Perplexity Isn't Just Better Google—It's the Death of SaaS

How AI is Shifting Software From Process Oriented SaaS to Goal Oriented Agents

We're witnessing a fundamental transformation in how software creates value. Traditional SaaS platforms built their entire business model around process optimization—taking existing workflows and making them more efficient. But a new paradigm is emerging, one I call the "perplexification" of software, named after Perplexity AI's approach to information retrieval. This shift represents a move away from process-oriented solutions toward goal-oriented ones, and it's about to reshape the entire software landscape.

The Traditional SaaS Value Creation Model

To understand this transformation, we first need to examine how SaaS software has historically created value. The traditional model follows a predictable pattern: identify an existing workflow, remove friction from one or more steps in that process, and capture a portion of the value created through that efficiency gain.

Consider a typical value exchange: if a manual process costs $10 to complete, a SaaS solution might automate or streamline that step, keeping $2 in fees while passing $8 in savings to the customer. Both parties benefit at the expense of the incumbent solution or manual process. This approach has proven extraordinarily lucrative because it's relatively low-risk—you're not trying to replace entire workflows, just optimizing specific steps within them.

This incremental approach has defined software development for decades. Customer relationship management systems didn't eliminate sales processes; they made them more efficient. Project management tools didn't remove the need for coordination; they streamlined communication and tracking. Accounting software didn't eliminate bookkeeping; it automated calculations and reduced errors.

Each solution carved out its niche by improving a specific part of a larger workflow, creating a complex ecosystem of interconnected tools that users had to learn, integrate, and manage.

Enter the “Perplexification” Era

The emergence of AI-powered solutions like Perplexity represents a fundamental departure from this model. Instead of optimizing processes, these tools aim to fulfill objectives directly, collapsing entire workflows into a single interaction.

Take the example of booking airline tickets—a process that traditionally involves multiple steps and platforms. The conventional journey looks like this: search Google for travel sites, evaluate different options, click through to a booking platform, input travel parameters, compare results, potentially get redirected to airline websites, navigate pricing discrepancies, complete authentication, add loyalty program information, input contact and payment info, complete the transaction and finally receive confirmation.

Perplexity's vision transforms this multi-step, multi-platform process into a single goal-oriented interaction. You define your goal ("book a flight") and your success metrics (specific dates, destinations, price range, airline preferences, loyalty program integration), and the AI handles everything else. The entire value chain gets compressed into one solution.

This isn't just about convenience—it's about value capture. Where the traditional model allowed multiple players to extract value at different steps (Google for search, Expedia for comparison, airlines for booking), the perplexified approach consolidates all that value into a single platform.

The Broader Implications

This shift extends far beyond travel booking or search. I’m seeing similar patterns across the software ecosystem, suggesting that perplexification represents a fundamental change in how we interact with technology.

Consider operating systems. Today, you launch your OS with specific objectives—checking email to confirm your child's summer camp enrollment, reviewing documents for a meeting, or organizing photos from a recent trip. But achieving these goals requires navigating through multiple applications, file systems, and interfaces. Each step exists largely because it has to under current technological constraints, not because it adds inherent value to your goal.

In a perplexified world, you could simply state your goal and define success metrics, letting AI navigate the underlying complexity. The traditional desktop paradigm of applications, folders, and manual file management becomes less relevant when you can interact directly with your desired outcomes.

Web browsers present another compelling example. Currently, browsing is inherently process-heavy: you open tabs, navigate between sites, copy information from one platform to input into another, cross-reference data across multiple sources, and manually synthesize information to complete tasks like trip planning or research projects.

A perplexified browser experience would let you state your research goal and quality criteria, then automatically gather, synthesize, and present the information you need. The multi-tab, multi-site workflow disappears in favor of direct goal fulfillment.

The Technology Behind the Transformation

What makes perplexification possible now is the convergence of several AI capabilities: natural language understanding for goal interpretation, reasoning systems for breaking down complex goals, automation technologies for executing multi-step processes, and integration capabilities for working across different platforms and data sources.

Tools like Cursor in the coding space demonstrate this shift beautifully. Traditional development environments optimize the coding process through better editors, debugging tools, and project management features. Cursor, by contrast, lets developers state their programming objectives and generates the code to fulfill them, collapsing much of the traditional development workflow.

Challenges and Considerations

This transformation isn't without challenges. Perplexified solutions require users to become better at defining goals and success metrics—skills that many haven't needed to develop in process-oriented software environments. In many cases, designers and developers have become accustomed to only defining goals and metrics after starting a process.

There are also questions about transparency, control, and what happens when AI-driven objective fulfillment doesn't match user expectations.

The shift also has profound implications for existing software companies. Businesses built on process optimization may find their value propositions undermined by solutions that eliminate those processes entirely. The entire middleware layer of the software ecosystem could become obsolete.

We're already witnessing this transformation in market dynamics. Many incumbent SaaS platforms are experiencing slowing growth rates, suggesting that value is beginning to migrate away from traditional process-oriented solutions. While it's not yet clear exactly where this value is accumulating, the evidence points toward goal-oriented AI solutions as the primary beneficiaries of this shift.

Looking Forward

The perplexification of software represents more than just technological evolution—it's a fundamental rethinking of the relationship between humans and computers. Instead of learning to navigate complex processes, users focus on articulating what they want to achieve and how they'll measure success.

This shift promises to democratize access to complex capabilities while potentially eliminating entire categories of software that exist solely to manage process complexity. As AI systems become more capable of understanding objectives and executing multi-step workflows, we should expect to see this pattern accelerate across industries.

The companies that recognize and adapt to this trend early will be positioned to capture disproportionate value in the new paradigm. Those that remain focused on process optimization may find themselves competing in an increasingly obsolete market.

The perplexification of software is just beginning, but its implications are profound. We're moving toward a world where the friction between intention and outcome continues to decrease, fundamentally changing how we think about software's role in our lives and work.