In the world of software-as-a-service (SaaS), staying ahead means understanding the latest trends in spending, adoption, and management. The recently released 2026 Zylo SaaS Management Index—Zylo’s eighth annual report—provides a comprehensive look at these dynamics, drawing from a mega dataset of over 40 million SaaS licenses and more than $75 billion in managed spend. As a marketing professional helping businesses optimize their digital strategies, I love this report. Whether you’re in IT, procurement, or finance, these insights reveal how AI is driving unprecedented changes in SaaS landscapes.

SaaS spending hits highs amid AI volatility

One of the standout revelations is the continued growth in SaaS expenditures. Large organizations are now averaging $55.7 million in annual SaaS spend, an 8% increase year-over-year. This uptick isn’t just from adding more tools; it’s largely fueled by AI integrations and evolving pricing models. AI-native applications have seen a massive 108% surge in spend overall, skyrocketing to 393% for big enterprises. Meanwhile, the broader AI category has exploded with 181% growth in usage, making it the fastest-expanding segment in the dataset.

However, this growth comes with challenges. 78% of IT leaders reported unexpected charges from AI features or consumption-based pricing, while 61% had to cut projects due to these unplanned costs. These figures underscore the need for robust governance to manage volatility, as rising costs can erode budgets and weaken negotiation positions during renewals.

Stabilizing portfolios with a focus on AI embedding efforts.

Gone are the days of unchecked SaaS sprawl. Rather than expanding through new acquisitions, growth is happening within existing tools via AI embeddings, tier upgrades, and usage-based pricing. This shift signals a maturation in SaaS management, where “SaaS velocity”—the rapid entry and exit of applications—demands stricter intake processes and clear ownership to mitigate risks.

New tools, such as the Digital Sales Room (DSR) Trumpet, are being introduced, but at the expense of legacy tech. In 2025, organizations added 34% new tools to their tech stacks. Yet overall stack size grew only 11% — 305 total apps on average, up from 275.

AI’s transformative role in SaaS

AI isn’t just a buzzword; it’s fundamentally altering the SaaS ecosystem. According to the report, 64% of SaaS companies are embedding AI as a supporting feature, with 36% making it core to their offerings. An impressive 92% have either launched or plan to introduce AI capabilities. This proliferation is rewriting pricing structures, moving from traditional seat-based models to token, action, or usage-based charges that can introduce mid-contract surprises.

Looking ahead, the report predicts AI will become the most expensive “invisible worker,” automating tasks but creating unmanaged spend. Usage-based pricing will expose low-value AI implementations, accelerating consolidation, and a “value crisis” will emerge, where spend must be justified by measurable outcomes.

Security risks and the imperative for governance

With AI’s rapid integration comes heightened security and financial risks. Hidden AI features in familiar tools can amplify exposure before governance catches up. The report emphasizes that without mature practices—like full visibility, cross-functional alignment between IT asset management (ITAM) and FinOps, and disciplined renewals—organizations are vulnerable to greater volatility and lost control.

Benchmarks and actionable recommendations

Zylo’s benchmarks, grounded in hard data rather than surveys, offer a roadmap for success. Companies with strong SaaS management programs are better equipped to handle AI-driven changes, improving forecasting and renewal outcomes. Key recommendations include:

• Implementing programmatic management to adapt to dynamic pricing.
• Aligning ITAM and FinOps for better usage insights and cost predictions.
• Tying AI expenditures to business value during evaluations and renewals.
• Prioritizing intake discipline to manage the accelerating churn in SaaS portfolios.

As we head further into 2026, trends like AI volatility, faster application lifecycles, and higher-stakes renewals will make SaaS management a core competency across teams.

Optimizing Your SaaS Strategy

AI is clearly both an opportunity and a challenge in the SaaS world. For businesses looking to thrive, investing in governance and visibility isn’t optional—it’s essential. If you’re navigating these complexities in your marketing or operational strategies, let’s connect. .