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Jason ✨👾SaaStr.Ai✨ Lemkin
One less discussed impact AI is having in B2B: it’s making your (1) old and (2) tiny competitors more competitive.
What do I mean?
First, a great AI on top of a dated platform can make it significantly more competitive. Zendesk has done a great job here, quietly. Its AI is pretty good, helping it stay current even with mass disruption in its space. It makes an 18-year old platform work pretty well in the AI age, at least on the surface.
Second, a great AI on top of a new start-up can partially balance out that it is feature-poor. Yes, it may not have all the workflows and functions of the bigger guys, but the AI itself, especially if clever, will do a lot of slick things the pre-AI low-end guys couldn’t do. A clever agent can go a long way.
This doesn’t mean the old guys and 5 person start-ups will disrupt you per se. It does mean they may much more competitive today than pre-AI.
A crazy example in the contact center space: the grandad of the space, Genesys. Founded way back, pre-Cloud in 1990 (!). Struggled to find its place when Cloud took over contact center, at least at first.
And today? It’s re-accelerating at $2B+ ARR, now growing 35% (!). And just closed a $1.5B investment from Salesforce and ServiceNow.
That’s how AI made a 1990 dinosaur … super competitive today.
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