Editorial illustration for AI cuts costs as 35% of teams replace SaaS, 78% plan builds by 2026
AI Slashes Enterprise Costs: 35% Ditch SaaS for Custom Tools
AI cuts costs as 35% of teams replace SaaS, 78% plan builds by 2026
The math is brutal for SaaS vendors. Thirty-five percent of teams have already ripped out at least one off-the-shelf tool and replaced it with something they built themselves. By 2026, 78% plan to do even more of that.
Workflow automation and internal admin tools are the first to go, and for good reason. A platform designed for thousands of customers optimizes for the average case. The average case is nobody’s actual case.
Org structures, compliance rules, data systems, and business logic are all unique. Off-the-shelf software was always an awkward fit there. Now AI has slashed the cost of building your own.
The result: custom builds aren’t just possible anymore. They’re cheaper. They’re smarter.
And enterprise governance is scrambling to catch up.
Retool’s report found that 35% of teams have already replaced at least one SaaS tool with a custom build, and 78% plan to build more custom tooling in 2026.
The math is simple: if your workflow tool optimizes for the average case, it optimizes for no one. Thirty-five percent of teams have already figured that out. By 2026, 78% more will follow, building, not buying.
AI has cracked open the door. The cost of custom software has collapsed, and the return is measured in millions. But here’s the rub: enterprise governance hasn’t caught up.
The same technology that makes building cheap also makes deploying fast, and fast can be reckless. The organizations that win won’t just be the ones that build, they’ll be the ones that build with guardrails. The tooling is ready.
The strategy? That part is yours to write.
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Common Questions Answered
What percentage of teams have already replaced SaaS tools with custom builds?
According to Retool's report, 35% of teams have already replaced at least one SaaS tool with a custom-built solution. This trend is driven by the cost-saving potential of AI-powered development and the increasing accessibility of custom software development.
Which types of SaaS tools are most likely to be replaced by custom builds?
Workflow automations (35%) and internal admin tools (33%) are the most vulnerable SaaS tools to replacement. Following these are business intelligence (BI) tools at 29% and customer relationship management (CRM) systems at 25%.
How many teams plan to build more custom tooling by 2026?
Retool's 2026 Build vs. Buy Shift Report reveals that 78% of surveyed teams plan to expand their own custom tooling by 2026. This significant percentage indicates a growing trend towards in-house software development driven by AI's ability to reduce coding costs.
