You Can’t Vibe-Code Trust: Why Real SaaS Still Wins in the AI Era

On the Ruby AI Podcast, hosts Valentino and Joe Leo welcome Scholarly CTO/co-founder Kelly Sutton to discuss building a vertical SaaS “faculty information system” for universities. Sutton explains why competitors can’t easily replicate Scholarly: higher ed is moving off decades-old homegrown software, and the product must meet trust, security, compliance, and regulatory demands such as SOC 2 Type II. He describes how Scholarly expanded from replacing Excel/Access tracking to sophisticated workflow automation and how universities recently shifted from AI skepticism to AI FOMO. Scholarly uses AI in product surfaces, heavily in engineering, and via an admin MCP server that helps ops/customer success rapidly configure workflows from faculty handbooks with human-in-the-loop review. The conversation debates MCP’s likely temporariness versus traditional APIs, emphasizes smaller reviewable “PR-sized” outputs, and frames AI as an implementation detail focused on customer value. Valentino also shares an experiment training Claude to build products, including ups.dev and an open-source Ruby uptime-monitoring gem.