Counter-Narrative: SaaS Churn Benchmarks Show Retention Improving as AI Features Deepen Lock-In, Not Accelerating Cannibalization

Artisan Growth Strategies·low signal

2026 churn-benchmark data points the opposite way from the 'AI kills SaaS' headline: the SaaS churn index improved to its best reading since late 2022, with analysts crediting AI features for raising switching costs and pulling customers into adjacent modules (e.g., Paylocity's expansion bet). Median B2B monthly churn sits near 3.5%, most of it voluntary. The honest read for builders: AI is bifurcating outcomes — it raises retention for platforms that embed it into the workflow while gutting thin point tools. Sourcing is aggregate-benchmark, so marked low pending a primary cohort dataset.