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So clearly AI is rapidly changing the way we do sales, but how will it all shake out? Over in the contact center and post-sales space, we can already see 20%+ of customer support execs been routinely replaced by AI. But is it working yet, these AI SDRs? 83% of you haven’t gotten anything from AI SDRs.
Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.
Top Posts of the Week: #1: Salesforce: Actually Were Going to Hire 2,000 Sales Execs Now To Sell AI #2: Gong: $100k Deals Take About 70 Days to Close #3: Why The Greatest Sales Teams Just Kill It On Dec 31. When Everyone Else Has Gone Home. #4:
50 cents of compute for 500 dollars of value — Sam Altman (@sama) February 3, 2025 So just how much will AI remake classic B2B software? On the one hand, new AI-first entrants are rocketing to $10m ARR in a year. And all the leaders in SaaS are leaning in on AI, from Salesforce to Asana to HubSpot to ServiceNow and more.
Generative AI is no longer just an exciting technological advancement––it’s a seismic shift in the SaaS landscape. Companies today are grappling with how to not only integrate AI into their products but how to do so in a way that makes financial sense.
Pricing is more than just a number on a contract — when used thoughtfully, it can become a strategic tool for your SaaS product that can drive product adoption, customer satisfaction, and business growth. ” Pricing is also more than just the bottom-line price level. ” So, How Should You Price?
One of the hottest topics in AI for B2B is around outcome-based pricing. Simply that outcome based pricing may be exciting to VCs who think it unlocks more TAM and budget, and it may seem exciting to founders and execs who think it will help them grow deal size. What I do know is a pricing model is not a product.
Ironclad CEO and co-founder Jason Boehmig joined Seema Amble, Partner at Andreessen Horowitz at SaaStr Annual to share their observations on what’s currently working and what’s not quite there yet for Artificial Intelligence (AI) in SaaS. What’s Currently Working in AI for SaaS 1.
AI has ushered in 100s of new competitors in each category. Endless price increases on the base. Using AI tools to ensure no emails are wasted. The best use of AI here in the end is to make sure no opened email is wasted. I dont mean they literally lower prices, thats rare. Just most AI-fueled ones.
Zuora and BCG’s latest report uncovers how hybrid pricing models—combining subscription and consumption (usage)—are fueling faster growth, especially in AI-driven sectors. Uncover the secrets driving the future of the Subscription Economy.
Should we care about AI infrastructure when building SaaS applications? Weinstein, and Managing Partner at Bain Capital Ventures, Aaref Hilaly, take the stage at SaaStr Annual to answer this question, plus what to expect with the future of AI. AI products will ultimately look and feel radically different from products today.
At SaaStr Annual’s AI Summit, we asked product leaders from some of the fastest-growing SaaS companies to share their insights on navigating the AI revolution while scaling multi-product strategies. As Hubert Palan, CEO at Productboard emphasized, “Don’t confuse AI-first with AI-only.
Cutting Through the Noise: Three Gen AI Pioneers Reshaping Enterprise Technology In a pivotal moment for generative AI, Vanessa Larco, partner at NEA, brought together three visionary CEOs convened at SaaStr Annual to share insights that are redefining the technological landscape.
After just a month of launching our own SaaStr AI (trained on a decade of content and hundreds of founders, speakers, and events), we’ve already had over 34,000 (!) conversations with our AI in just the first 30 days. With SaaStr AI, we’ve had almost 35,000 founder conversations in less than 30 days. But the reality?
So will buyers really pay more for AI? Or will they expect it to be included in the already in many cases expensive purchase price for the core product? On the one hand, many players in the support space have clearly been able to charge incrementally for AI-based issue resolution, from Intercom to Zendesk to Gorgias and more.
Activant Capital brought together at SaaStr Annua l a group of break-out next-generation AI enhanced vertical software leaders: the CEOs from Owner.com, Alloy Automation, and DoNotPay. At SaaStr Annual they shared their experiences and insights on implementing AI in vertical software companies. New restaurants up +31% in 1 month!
Six months ago, security was the number one prohibition preventing businesses and software companies from buying AI. And this is true across all of software and AI. #3: 5: AI Isn’t Impacting Conversion Rate Companies can now deploy a sales copilot or utilize full SDR automation fairly quickly. It isn’t predictable.
SaaStr CEO and Founder Jason Lemkin recently sat down with HubSpot Chairman and co-founder Brian Halligan , who shared valuable insights on the current state of SaaS, evolving board meeting formats, and how AI is reshaping the industry. Here are the key takeaways from part 1 of this interview.
The bar has gone up, and it’s not just in AI. Buyers are expecting much more from a product, and yes, AI is accelerating those expectations. Google Cloud , Azure, and GitLab, all tied directly or indirectly to AI, are seeing massive acceleration. So non-tech is strong, we all know AI is strong. 1: AI is Table Stakes.
Pricing an AI product will be a defining question in software for the next few years. AI products offer productivity gains. We can observe the market trends today across some of the larger SaaS companies who offer AIpricing. Company Product Base PriceAIPrice Ratio Github Github Enterprise 21 10 0.67
Can AI Really Enable SaaS to Dramatically Access More Budget? Can AI enable B2B companies to access more budget, or is it all just being shifted around by CEOs? The study also noted that 74% of the respondents say they expect their budget to rise in the coming year, with 59% stating the driver is experimental budget for areas like AI.
Joselyn Goldfein , Managing Director at Zeta Venture Partners, which invests in AI and data infrastructure-focused startups from inception through seed stage And see everyone at 2025 SaaStr Annual, May 13-15 in SF Bay!! What VCs Are Funding in AI Today The AI funding landscape has evolved rapidly in 2023-2024.
Generative AI is revolutionizing how corporations operate by enhancing efficiency and innovation across various functions. Focusing on generative AI applications in a select few corporate functions can contribute to a significant portion of the technology's overall impact.
Here, we see threats when customer attempt to cancel, big price increases every year, and renewal managers trying to force customers to buy extra seats they don’t need. but also In high-growth AI-fueled spaces, massive competition as well. How many AI-first tools are Freemium? Get better at using AI. Cry my a river.
AI Support / Agent leader Moveworks at $100m+ ARR sells to ServiceNow for $2.85 Billion, a 20x-25x ARR exit and a huge, huge price in absolute terms. Still, somewhat a crazy world where you can see your B2B AI company for $2.8 So the headline is incredibly impressive. Its ServiceNows largest acquisition ever. A huge exit.
Subscribe now Is Seat Based Pricing Dead? If AI delivers on its promise, it may spell the end of the SaaS business model as we know it. Then infrastructure / dev tools software companies took a different approach - more of a consumption based pricing model (I’m generalizing, not all infra is consumption based).
And with a pricing model of $195 per month, Procore was capital-efficient but not yet an established industry giant. AI & The Future of Construction SaaS The construction industry is infamous for being labor-constrained. With AI, Procore is poised to help its customers do more with fewer resources.
With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? So we asked the expert, Sandhya Hegde, General Partner at Unusual Ventures to share her best practices and trends for pricing and packaging AI products.
The Next Big Thing in AI Compliance: What ISO 42001 Means for Your SaaS Company The Cold Hard Truth About AI Risk in SaaS Picture this: Your product team’s AI chatbot gets breached. Why ISO 42001 Actually Matters (Like, Really Matters) Here’s the deal: AI isn’t just another feature anymore. No protocol.
How to price and package AI SaaS products with Sandhya Hegde at Unusual Ventures Pricing is always a super popular topic and this was a great one from Unusual Ventures on pricing in the AI age. Watch / listen and you will do better in GTM. I guarantee it. #5.
In a world where AI agents are 2.5-3x 3x as productive as humans, which would parallel mechanical robots, how does a software company price? Building on yesterday’s post , pricing in software companies may change significantly when AI agents become the norm. Buyers would need to be educated.
In it, we cover the SaaS community’s most pressing questions about Artificial Intelligence (AI), pricing, efficiency, and funding. On Wednesday, March 27th, SaaStr is hosting AI Day, you can sign up for free at this link. The biggest thing on many of our minds is what the future of AI will be in B2B.
Subscribe now The Year of “Enterprise AI” One of the biggest challenges facing AI systems in enterprises today is the “last mile” problem: how do you make AI both reliable and accurate for specific enterprise use cases? This is what I’m calling “Enterprise AI.”
Seat Expansion Driving Growth, Along with Cross-Sell of New Products Long live per-seat models and pricing! A Big AI Push, But Being Very Conservative on Consumption Pricing For now, Atlassian is sticking mainly to per-seat pricing. It’s split 50/50 at Atlassian. #5. And a few other interesting leanings: #6. $10k+
AI is already reshaping B2B SaaS, and its only going to accelerate. AI is Table Stakes Now. AI isnt a differentiator anymore per se its the baseline. Customers expect AI to be baked into your product, whether its automating workflows, improving onboarding, or delivering predictive insights. Mediocre AI wont cut it. #2.
A combination of AI and buyer retrenchment had killed it. Many SaaS leaders are now benefitting from selling AI. Not everyone has benefitted from selling AI to their base. Let’s take a look at the market cap / stock price of some SaaS leaders: That would anyone feel more bullish. That SaaS was Dead.
We’ve been tracking the performance of publicly traded AI companies since the beginning of the year. Publicly traded companies with AI products or strategies trade at about twice the forward multiple of non-AI peers. 1 Within the private markets, the same is true within the Series A. Not this time.
Today, the battle is for AI gravity. AI requires orders of magnitude more compute than other workloads, so there’s much more money & profit to be made serving customers running them. Facebook and Google both announced very similar strategies of overinvesting in AI data centers. History will rhyme with AI.
83% Percent of You Havent Gotten AI SDRs to Work Yet Top Vids and Pods: #1: “How to Successfully Bring AI Products to Market at Scale with GitHubs CRO” #2. How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk #3. appeared first on SaaStr.
Ramp published its quarterly spending trends & revealed how businesses are spending on AI. There are many great data points that underscore the growth in AI but there are important nuances in the patterns. First, AI growth rates across the most popular vendors have fallen 78% annually.
The company’s pricing power at work : limited supply & increased demand pushes prices higher. AI has become the engine pushing the technology markets forward - both at the infrastructure & software levels. Metric Q1 Q2 Inventory, $b 4.6 DSI 165 97 Long term supply obligations, $b 7.3 Accounts receivable, $b 4.1
AI is remaking so many categories, but it’s often murky exactly … how. Venture Capital is out in force for the hottest AI companies — but in many cases, it’s checked out in other categories. Raising prices may or may not work for you. Over the years, so much has changed in SaaS. Not yet, at least.
This growth is fueled by AI workloads. ” “Higher-than-expected AI consumption contributed to revenue growth in Azure.” “In Azure, we expect revenue growth to be 26% to 27% in constant currency with an increasing contribution from AI. Google, on the other hand, declined after having plateaued last quarter.
And as stock prices rip higher, growth VC floods back in. In AI, it’s insane. 2021 prices were certainly inflated in many cases from valuations today. Top SaaS stocks are on fire the past few months, and the SaaS downturn in B2B2B appears to be behind us. It’s natural. But how aggressive will late stage investors be?
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