'The introduction of AI is an accelerator, not a replacement for packaged applications': Oracle bets on AI to strengthen customer ROI

Date:
Mon, 14 Sep 2026 11:20:00 +0000

Description:
Oracle says that SaaS and software isn't going anywhere, but AI will ultimately change how we interact with it for good.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Oracle thinks AI will change
how we use software, but we'll still use software for years to come Agents will interact with structured software, humans will manage those agents Overall software revenue dropped 3% but cloud revenue rose 60% Oracle co-CEO Mike Sicilia just declared on the company's first earnings call of fiscal
2027 that "AI is an accelerator, not a replacement for packaged
applications," hitting back against the SaaSpocalypse argument that warns AI could replace traditional software as we know it today.

Central to his argument is that enterprise suites offer standardized, end-to-end processes and rules that AI can't replace. But that's not to say that AI won't have its role in software going forward. Sicilia admitted that employee training and upskilling has long been a drawback for many software packages, and that's where companies like Oracle could actually lean on artificial intelligence to improve things. Latest Videos From TechRadar Watch full video here: AI isn't going to replace software, Oracle says With AI, employees no longer need to navigate so many complicated apps themselves, and AI agents can carry out tasks using the company's existing workflows and business rules. Humans will likely move over to supervisory roles, Oracle predicts.

"AI changes this dynamic," Sicilia said, noting that agentic AI could drastically reduce the time and cost involved with deploying enterprise applications. You may like AI agents arent the end of SaaS theyre driving
its next phase of growth Is the SaaSpocalypse over? And if so, what comes next? A turning point for Saas: Not SaaSpocalypse, but an opportunity to differentiate

"We are incredibly confident in the potential for this new paradigm to
deliver much more rapid ROI for our customers," he added. The company is slated to add a new agentic AI accelerator to automate parts of SaaS implementation as soon as next month.

But the company isn't without its own challenges when it comes to AI and software. Despite a 10% rise in quarterly SaaS revenue, overall software revenue dropped 3%. Cloud revenue, which includes the company's
infrastructure and AI capacity, grew a considerable 60%. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get
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Looking ahead, Oracle's standpoint is that AI may change software interfaces, but it won't actually replace the software that lies beneath. Follow
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Link to news story: https://www.techradar.com/pro/the-introduction-of-ai-is-an-accelerator-not-a-r eplacement-for-packaged-applications-oracle-bets-on-ai-to-strengthen-customer- roi


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