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AI is putting pressure on SaaS companies from both below and above, and PE firms need a sharper way to assess which portfolio companies still have durable value.

In this episode of ProPEllant, we talk with Amit Pande about how private equity and growth equity operating partners should stress test SaaS companies in the AI era. Amit argues that horizontal SaaS is getting squeezed by foundation models on one side and data platform companies on the other.

The value that remains is often deeper than the product demo. It lives in proprietary data, embedded workflows, customer relationships, and the ability to help enterprise buyers make better decisions inside messy real-world operating environments.

We also explore why AI copilots have created buyer fatigue, why “coworker” may be a better metaphor for enterprise AI, and how PE-backed companies should rethink GTM, marketing org design, professional services, and customer-backward product strategy.

Key takeaways:

• SaaS companies need to be stress tested for workflow ownership and proprietary data.
• AI is changing how PE firms should think about IT spend and human capital.
• Copilot-style AI may not be enough to create enterprise value.
• Forward-deployed services can become a product feedback loop, not just a margin drag.
• Customer-backward strategy may matter more than technology-forward positioning.

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AI is changing SaaS pricing by forcing companies to rethink how they capture value, protect margin, and package new capabilities. 

In the first episode of ProPEllant, Ken Lempit talks with Pat Meegan, Senior Partner and Pricing Practice Leader at Investor Group Services, about how AI is changing the economics of SaaS. As companies introduce AI features and agentic capabilities, traditional seat-based pricing often no longer reflects either the cost to deliver the product or the value customers receive. 

Pat explains why pricing, packaging, product, and sales can no longer operate as separate conversations. The discussion covers how SaaS companies are thinking about add-ons, premium tiers, credits, and hybrid pricing models as they work to align monetization more closely with usage and outcomes. 

The episode also explores what private equity firms, operating partners, and software leadership teams should be watching for during diligence and post-close value creation, especially when pricing has not been revisited in years or new product value is being added without a clear monetization strategy. 

Key takeaways

•  Why AI is putting pressure on traditional seat-based SaaS pricing 
•  How pricing and packaging need to evolve alongside product strategy 
•  Why credit-based and hybrid models are getting more attention 
•  Where operators and investors may be missing monetization upside