This is a classic example of people misapplying the logic of the SaaS world to the AI world. If you're building software to sell, you're in trouble. The people that are finding success in this space are using AI to allow them to solve the problems they used to have to pay for software and hire people to solve.

All of the most promising companies I know today are very small and are leveraging AI to solve physical problems in the real world that just wouldn't be possible with so few people even a few years back.