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Guest: Sai Dhanak, CEO & Co-Founder of Deduction

AI is changing SaaS, but this episode argues the bigger opportunity may be owning the service outcome, not just selling the software.

In this episode of SaaS Backwards, Sai Dhanak, CEO and co-founder of Deduction, explains why he chose not to build software for accountants and instead built an AI-powered tax firm. He shares why selling SaaS into a shrinking market can be the wrong bet, how Deduction combines AI with licensed CPAs, and why outcome-based models may be more durable in certain verticals. It’s a sharp conversation on AI, vertical SaaS, pricing, and where real defensibility may come from next.

Key takeaways:

Selling SaaS into a shrinking market can be the wrong strategy
AI creates new opportunities to own the service outcome directly
Outcome-based pricing requires operational control, not just a pricing change

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