"In this labor transition, we expect the historical margin gap between service businesses (below 30%) and SaaS businesses (above 80%) to shrink as AI services replace human-centric services enabled by SaaS tools. Service margins will become software margins."

"In this labor transition, we expect the historical margin gap between service businesses (below 30%) and SaaS businesses (above 80%) to shrink as AI services replace human-centric services enabled by SaaS tools. Service margins will become software margins."

 https://www.nfx.com/post/ai-workforce-is-here