Amadeus Capital Partners chief executive Dame Anne Glover, widely regarded as the godmother of European venture capital, warns that the artificial intelligence boom will render certain software-as-a-service providers obsolete. Speaking on a PE International podcast, Glover drew on her 26-year track record at the deep-tech investment firm she co-founded in 1997 to assess how generative AI reshapes the competitive landscape for enterprise software.

Glover's thesis centers on the vulnerability of SaaS businesses built on narrow workflow automation — precisely the layer where large language models now excel. As foundation models absorb capabilities like document parsing, code generation, and customer support triage, the moats protecting incumbents erode. The implication for investors: portfolio companies without proprietary data advantages or deep vertical integration face compression.

The Amadeus portfolio, spanning quantum computing, life sciences, and AI infrastructure, positions Glover to observe the transition from both sides. She notes European founders often underestimate the speed at which U.S. hyperscalers deploy AI-native products, leaving a narrow window for differentiation. Her firm's strategy now prioritizes startups that own unique data loops or operate in regulated domains where generic models cannot easily penetrate.

For limited partners, the message is clear: vintage venture allocations heavy in horizontal SaaS require re-underwriting. The next fund cycle will reward managers who distinguish between AI-enhanced incumbents and AI-native disruptors — a distinction that separates survivors from dinosaurs.