I think another way for AI-first companies to succeed is to actually make a product that's better because of AI, not just easier or faster. A lot of AI capabilities still center around automation and small improvements to already existing workflows versus creating an AI-first version of something.
I always appreciate articles which distinguish the system of record from the system of engagement. Many people conflate the two and they have very different histories and purposes.
One of the interesting, enduring aspects of the world of enterprise SaaS (i.e., the incumbents) is that, while the enterprise benefits from having a source of truth (with good data hygiene), the individuals tasked with maintaining that source of truth balk at having to key in data. Nobody goes to work saying to themselves, "today is the day I get to enter my sales activities in SFDC." It will be interesting to see how--or whether--the reshuffling in the industry changes that dynamic of mismatched incentives.
Incumbents that allow themselves to be disintermediated from their customers are taking on a sizable risk and should factor this into partnership agreements. Losing the buying door is losing the war.
Indeed, scary stuff! I particularly worry for firms whose stock-in-trade is knowledge and expert judgement now partnering with AI labs capable of making them less relevant. But then, unfortunately, it’s not like they have a choice.
Is this a canary in the coal mine moment?
I think another way for AI-first companies to succeed is to actually make a product that's better because of AI, not just easier or faster. A lot of AI capabilities still center around automation and small improvements to already existing workflows versus creating an AI-first version of something.
I always appreciate articles which distinguish the system of record from the system of engagement. Many people conflate the two and they have very different histories and purposes.
Love that incumbents
One of the interesting, enduring aspects of the world of enterprise SaaS (i.e., the incumbents) is that, while the enterprise benefits from having a source of truth (with good data hygiene), the individuals tasked with maintaining that source of truth balk at having to key in data. Nobody goes to work saying to themselves, "today is the day I get to enter my sales activities in SFDC." It will be interesting to see how--or whether--the reshuffling in the industry changes that dynamic of mismatched incentives.
Incumbents that allow themselves to be disintermediated from their customers are taking on a sizable risk and should factor this into partnership agreements. Losing the buying door is losing the war.
Indeed, scary stuff! I particularly worry for firms whose stock-in-trade is knowledge and expert judgement now partnering with AI labs capable of making them less relevant. But then, unfortunately, it’s not like they have a choice.
I needed this
Same