In episode #329, Ben Murray, The SaaS CFO, breaks down the growing debate around SaaS economics versus AI economics. A recent post claimed that “SaaS metrics are broken” and that traditional KPIs no longer apply to AI companies.

Ben challenges this idea and walks through why recurring revenue metrics still matter, how revenue models differ across SaaS and AI, and what CFOs need to understand about gross margin, unit economics, and total addressable market.

Key Topics Covered

• 
  

  Why claims that SaaS metrics are “broken” are inaccurate

  
  


• 
  

  The difference between SaaS economics and AI economics

  
  


• 
  

  Why recurring revenue metrics still apply to AI companies

  
  


• 
  

  How subscription versus usage revenue impacts KPI calculation

  
  


• 
  

  Gross margin expectations for SaaS vs. AI companies

  
  


• 
  

  Whether AI companies truly generate more profit per customer

  
  


• 
  

  The role of absolute profit versus per-customer economics

  
  


• 
  

  How AI may expand TAM by targeting labor budgets, not just software budgets

  
  


• 
  

  How Agentic AI affects financial modeling and cost structures

  
  


• 
  

  Using ROSE (Return on Software Employees) to evaluate AI-driven ROI

  
  

What You’ll Learn

• 
  

  Why SaaS metrics still matter for both SaaS and AI companies

  
  


• 
  

  How CFOs should evaluate margins, ARR, and revenue quality in AI models

  
  


• 
  

  The difference between rate-based economics (ARPA, ACV) and volume-based economics (absolute profit)

  
  


• 
  

  How to think about financial strategy when transitioning from a pure SaaS model to an AI-embedded product model

  
  


• 
  

  How to assess realistic AI unit economics instead of relying on hype

  
  

Who This Episode Is For

• 
  

  SaaS CFOs and finance leaders evaluating AI investments

  
  


• 
  

  Founders embedding AI into their product and adjusting their financial models

  
  


• 
  

  Operators who want a grounded understanding of real AI economics

  
  


• 
  

  Investors assessing how AI shifts revenue models and margins

  
  

Related Resources

• 
  

  Ben’s upcoming deep-dive blog post on SaaS vs. AI economics: TheSaaSCFO.com

  
  


• 
  

  SaaS Metrics Foundation course for mastering KPI’s, ARR, MRR, and unit economics: https://www.thesaasacademy.com/the-saas-metrics-foundation

  
  


• 
  

  ROSE metric framework for analyzing AI-driven productivity and financial systems: https://www.thesaascfo.com/saas-rose-metric/