Dissecting Xu Shaochun's five judgments: In the AI era, are enterprise software values being amplified or rendered worthless?

“Will AI kill software companies?” This question has recently become a hot topic in the capital markets.

The cause was Anthropic’s launch of industry plugins capable of deeply integrating into enterprise operations, achieving “AI replacing humans for basic tasks,” which directly triggered a collective panic in the software industry. The narrative of “AI devouring SaaS” has been rampant.

Amidst the pervasive pessimism, Xu Shaochun, Chairman and CEO of Kingdee Group, offered a completely different perspective at a conference in Shenzhen. He presented five judgments about enterprise software in the AI era: the most exciting era for enterprise software has arrived; as intelligent agent development systems mature, the value of enterprise software will be infinitely amplified; those who embrace AI will survive, those who resist will perish, and storms will only make the strong stronger; the essence of AI is not AI itself, but the people applying AI; in the AI era, intelligent co-players will win.

In Xu Shaochun’s view, AI will not destroy SaaS—in fact, it will usher in the “most exciting era” for this industry. Is this pure optimism, or a calm deduction based on industry logic?

Judgment 1: The most exciting era for enterprise software has arrived

The market generally worries that after AI replaces standardized work, demand for enterprise software will decline, and SaaS subscription revenue will shrink significantly.

But reality sharply contrasts with these pessimistic expectations: leading software companies at home and abroad still see healthy revenue growth. For example, Kingdee’s revenue in 2025 is projected to be about 7.006 billion yuan, with an adjusted net profit of approximately 232 million yuan, achieving double growth.

The disconnect between market sentiment and performance stems from ignoring the core value of SaaS: long-validated business logic and industry know-how are the unshakable foundation of enterprise software. The value of AI lies in optimizing work efficiency, not replacing the software itself. It can inject new vitality into SaaS, expand its value boundaries, create more application scenarios, and further enlarge the entire software market. Xu Shaochun’s excitement is rooted in this.

Judgment 2: The intelligent agent development system is continuously maturing, and the value of enterprise software will be infinitely amplified

Traditional software’s value is limited to “providing functions,” relying heavily on manual operations. In contrast, intelligent agents connect via APIs to user intents, capable of automatically cross-system data retrieval, analysis, execution, and review, directly delivering business results—transforming from a “tool” into a “digital employee.”

The maturity of intelligent agent development systems brings two major changes: first, development costs continue to decrease, enabling software companies to respond quickly to demands and create tailored intelligent agent products; second, it promotes software from single-point applications toward ecosystem collaboration, forming comprehensive intelligent systems covering entire business processes.

From single tools to “digital employees,” from isolated services to ecosystem collaboration, the value boundary of enterprise software is being fully expanded, opening up infinite growth possibilities.

Judgment 3: Those who embrace AI will survive, those who resist will perish; storms will only make the strong stronger

History repeatedly proves that every technological breakthrough reshapes industry patterns, eliminates stagnators, and rewards those who adapt to the trend. Currently, the strategic choices of top global software companies are highly aligned—fully embracing AI to build core competitiveness through technological innovation.

Take Kingdee as an example. As one of the earliest companies to deploy AI in the industry, Kingdee has integrated AI into its enterprise management products for continuous iteration. Now, it is promoting AI application across all staff, especially in R&D, fully implementing AI capabilities.

AI breaks traditional industry barriers. Leading companies leverage their technological, data, and ecosystem advantages to build new competitive moats. Small and medium vendors that fail to seize AI opportunities or differentiate in niche areas will find it difficult to survive within the giants’ ecosystems.

Judgment 4: The essence of AI is not AI itself, but the people applying AI

The ultimate value of AI depends on humans—whether in developing intelligent agents, training models, or implementing technology, human leadership is indispensable. From this perspective, AI’s core is not the advanced technology itself, but the people and organizations that make technology more valuable.

Kingdee’s focus on R&D of intelligent agents and enterprise application software captures this core. Its “moat” lies in a deep understanding of business logic, precise control of industry scenarios, efficient use of high-quality data, and a service system that makes AI application accessible to more people.

Judgment 5: In the AI era, intelligent co-players will win

“Future business competition is a contest between ecosystems” has become an industry consensus.

Leading domestic and international companies are actively building AI ecosystems, forming patterns of “technological complementarity, resource sharing, and value co-creation.” For example, Kingdee not only leads the establishment of an enterprise management AI ecosystem alliance but also signed strategic cooperation agreements with nearly 50 global enterprise management AI marketing and service partners at this year’s global ecosystem partner conference, further deepening collaboration in enterprise digitalization and AI applications.

Open platforms from software vendors, ecosystem partners leveraging industry advantages, and clear demand-driven collaboration with enterprise clients—when “vendor-partner-client” achieve symbiosis, the industry can truly prosper. Those who can build or integrate efficient, open intelligent co-systems will gain a competitive edge in the future.

Overall Evaluation: A Long-term Industry Framework Distinct from Short-term Sentiment

Overall, Xu Shaochun’s five judgments represent a systematic reflection on the enterprise software industry facing AI disruption.

They transcend short-term market emotions, constructing a logical framework rooted in industry fundamentals—viewing AI not as the “end” of enterprise software, but as an “enabler” for industry value redefinition.

For the enterprise software industry, AI does not bring crisis but unprecedented development opportunities. Proactively embracing, deeply integrating, and fostering ecosystem symbiosis will undoubtedly usher in the most exciting golden age for enterprise software.