The Truth About "AI Wrappers" apps
The Truth About AI and SaaS: Why ChatGPT Won't Kill Your Business
I keep hearing this myth everywhere in the founder community:
ChatGPT is going to destroy SaaS businesses.
The logic goes something like this - why would anyone pay for software when they can just ask AI to do things for them? Business owners and consumers can now use ChatGPT or Claude for everything, so traditional software is dead, right?
Wrong. Completely wrong. And I'm going to explain why this thinking misses the entire point of how and why businesses actually buy products.
The Reality Check Nobody Wants to Hear
Here's what people pushing the "AI kills SaaS" narrative don't understand: most users - especially business owners - would rather pay for a push-button solution than spend hours tinkering with ChatGPT prompts. They're running businesses, not playing around with AI models. They don't have time to figure out the perfect prompting strategy or go through the whole nine yards of trial and error. This is exactly the case for invisible AI - AI should work behind the scenes, not demand user attention.
And here's the second truth bomb: people are inherently lazy. I'm not saying this to be mean - it's just human nature. We'd rather snap a picture and get an immediate response. We'd rather push a button and get results. That's how society works. That's how we're wired.
When I talk to business owners about AI tools, their eyes glaze over. They don't want to become prompt engineers. They want solutions.
The Time Tax Nobody Talks About
Let me break down why AI isn't the business killer everyone thinks it is. First up - time.
Even if you're technically savvy, you rarely get what you need from ChatGPT on the first try. It takes tinkering. Back and forth. Refinement. Sure, AI is getting better at understanding one-shot questions, but for most business applications? You're still looking at multiple rounds of communication to get anything useful.
I've watched business owners try to use ChatGPT for their marketing. After 30 minutes of frustration, they give up. That friction - that time investment - is a dealbreaker when you're trying to run a company.
Generic Answers for Specific Problems
Here's another problem with the "just use ChatGPT" crowd - they forget about context. When you ask ChatGPT something without proper background, it gives you the most generic, surface-level answer possible.
Want to see this in action? Go ask ChatGPT to "write me a sales copy for any product." I'll wait.
What you'll get back is amateur hour. Anyone who knows sales will recognize it immediately - generic fluff without any of the psychological triggers that actually convert prospects into customers.
To get real value from AI, you need to provide massive context. If you're creating an ad campaign, you need to show the model examples of ads that work. You need to explain your brand voice. You need to reference proven copywriting frameworks. Without this foundational knowledge, you're getting garbage.
The Skills Gap Is Real
This brings me to my third point - and this one's huge. Most business owners don't know what they don't know.
Your average landscaper has never heard of a "lead generation funnel" or "landing page" or "conversion rate optimization". Your local chiropractor doesn't understand the difference between SEO and a "organic social". These digital marketing concepts are completely foreign to brick-and-mortar business owners who operate outside the digital world.
So when they sit down with ChatGPT, they literally don't have the vocabulary to ask for what they need. They know they want more customers. They know they want a website that generates inquiries. But the technology and methodology to get there? Unknown. And frankly, they have zero desire to learn it.
They just want to push a button and get leads. Period.
Solutions Beat Resources Every Time
Here's a comparison that might help: telling businesses to use ChatGPT is like telling someone, "Hey, everything you need to know is free on YouTube. You don't need courses or training - just search for it!"
Technically true? Sure. Practically useful? Not even close.
First, you need to know what to search for. Then you need to separate good information from complete garbage - and trust me, there's tons of garbage out there. ChatGPT has the same problem with its notorious hallucinations. Business owners don't have time to fact-check every AI response or dig through mountains of content to find the nuggets of truth.
Current AI just isn't autonomous or smart enough to understand your specific business context. It doesn't know who you are, what your unique challenges look like, or what solution fits your exact situation. The technology isn't there yet - and may not be anytime soon.
What Actually Makes Money in B2B Software
So if generic AI isn't the answer, what should you build? Focus on the three problems that make businesses open their wallets every single time:
1. Solve Their Overhead Costs
Build tools that minimize the cost of doing business. Whether it's project management software, CRM systems, inventory management, or support automation - if you can reduce what they spend on labor and resources, you're golden. Businesses will pay handsomely to optimize their operations and reduce burn rate. This focus on business value is why I chose B2B over B2C as a solo founder - the economics just make more sense.
2. Solve Their Lead Generation Problem
Can your software drum up more business? Help them get more customers? Convert more leads? Anything from automated ad management to conversion optimization tools - if it brings in revenue, they'll buy it. They won't waste time prompting ChatGPT when they need real results.
3. Provide Security and Loss Prevention
This one's more advanced but incredibly lucrative. Can you minimize risk? Protect against data breaches? Ensure compliance for medical or fintech companies? Prevent costly disputes before they happen?
Disputes alone can destroy a business's margins. If you can build a system that detects potential disputers before they file claims, or helps companies avoid the legal nightmares of non-compliance, you're protecting their bottom line directly.
The Bottom Line
Everyone's talking about "chat to your _____" wrapper apps - applications wrapped around AI APIs - like they're revolutionary. But here's what the hype merchants won't tell you: they're basically expensive bandaids on AI's chaotic outputs.
Hardly innovative.
Uncomfortable realisation: Business owners do not want to 'chat' to anything. They want to push a button and get results.
The contrarian truth? Billion-dollar SaaS dreams don't come from slapping a UI on OpenAI API.
They come from solving real business problems in ways that eliminate friction, not add it.
When pundits proclaim SaaS immortality through "Chat Apps", that's wishful thinking from VCs trying to prop up their portfolios. Your "billion-dollar wrapper" is just a temporary fix until legitimate startups SEAMLESSLY integrate AI into their already existing products.
And the end user? They won't even know AI is behind the scenes.
But SaaS isn't dead. It's evolving. The winners will be those who use AI as a tool to deliver faster, better solutions to those three core business problems. Not those who expect business owners to become prompt engineers. Understanding the right and wrong ways to integrate AI in business is crucial for building sustainable software companies.
Build something that lets them push a button and get results. That's what I'm building myself. Because at the end of the day, businesses don't buy technology - they buy solutions to their problems. And until AI can deliver that without friction, there's massive opportunity for those who understand the difference.