Ashley Stewart‘s scoops are always worth reading. This week, she published a sharp piece on the AI threat to software, and how Microsoft, Salesforce, and others are responding.
Buried in the story was a deceptively simple question: does your AI agent count as an employee?
At a recent conference, Microsoft executive Rajesh Jha floated a provocative idea. In a future where companies deploy fleets of AI agents, those agents may need their own identities — logins, inboxes, and even seats inside software systems. If so, AI wouldn’t shrink software revenue. It could expand it.
“All of those embodied agents are seat opportunities,” Jha said, envisioning organizations with more agents than humans — each effectively a user that must pay for a software license, or “seat” in industry lingo.
That’s a radical twist in the SaaS pricing debate rattling companies like Microsoft, Salesforce, and Workday. Investors worry AI could hollow out seat-based pricing, the backbone of enterprise software. If one human can manage dozens of agents, why pay for dozens of licenses?
Jha’s answer: because those agents are the new users. A company with 20 employees might buy 20 Microsoft 365 licenses today. If each employee gets five AI agents, and the workforce shrinks to 10 people, that could still mean 50 paid seats.
Not everyone buys it.
Nenad Milicevic, a partner at AlixPartners, sees the opposite. AI agents will reduce the number of humans interacting with software, slashing licenses. Instead of 20 employees, you might have one person overseeing a handful of agents. That shift would pressure vendors and empower customers to push back on pricing that no longer makes sense.
Milicevic argues the winners will be open platforms. Companies could charge extra for machine-based access, but risk losing customers to software rivals that let agents operate freely.
Which brings us back to the core tension: if AI agents are just extensions of you, charging extra feels like double billing. If they’re autonomous workers, paying for them may be inevitable.
The answer could define the next decade of software economics.
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