- Oracle believes AI will transform software usage, yet traditional applications will remain relevant for years.
- AI agents will engage with structured software while humans oversee those agents.
- Overall software revenue fell 3%, whereas cloud revenue surged 60%.
Oracle co‑CEO Mike Sicilia stated during the firm’s first fiscal 2027 earnings call that “AI is an accelerator, not a replacement for packaged applications,” countering the SaaSpocalypse narrative that warns AI could supplant conventional software.
His core argument centers on the fact that enterprise suites deliver standardized, end‑to‑end processes and rules that AI cannot replicate, though he acknowledges AI will still play a role moving forward.
Sicilia noted that employee training and upskilling have long been a hurdle for many software packages, and that Oracle sees AI as a way to alleviate that burden.
AI isn’t going to replace software, Oracle says
With AI, employees no longer need to wrestle with numerous complex applications; AI agents can execute tasks within existing workflows and business rules, allowing humans to shift into supervisory oversight, Oracle predicts.
“AI changes this dynamic,” Sicilia said, noting that agentic AI could drastically reduce the time and cost involved with deploying enterprise applications.
“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%.
Looking ahead, Oracle’s standpoint is that AI may change software interfaces, but it won’t actually replace the software that lies beneath.
