In 2017, Nvidia founder, president, and CEO Jensen Huang said, “Software is eating the world, but AI is going to eat software.” Flash forward to 2024, and Huang couldn’t have been more right.
From video conferencing to instant messaging, to design tools and social media management, software has become ubiquitous in our everyday lives at work. As the software landscape continues to explode—with more than 2,100 different categories in the G2 marketplace—artificial intelligence (AI) is the catalyst behind recent growth. In just the past year, 643 new products were added to AI categories on G2, making AI the fastest-growing software market.
Today, over 1 billion knowledge workers globally are in pursuit of the right software products to enhance their productivity. This current AI surge, thanks in part to the introduction of OpenAI’s ChatGPT, can help them achieve this pursuit—representing the perfect big wave for software vendors to meet modern buyers’ needs.
THE CONSUMERIZATION OF B2B BUYING ACCELERATES IN AN AGE OF AI
A new generation of decision-makers is emerging, one that has grown up doing research online to make the vast majority of decisions, including: How many reviews did this pair of shoes get on Amazon? How many people rated this hotel 4+ stars on TripAdvisor? When is the cheapest time to buy this flight?This list goes on, but now, it translates to B2B.
Now, just like they do with consumer products, most B2B buyers also prefer to self-serve during the software buying journey, conducting research on their own. According to a G2 survey of 1,700 B2B software decision-makers globally, 67% said they usually engage a salesperson at a software company only when they have already arrived at a purchasing decision. Beyond this, “software company salesperson” was cited as the least influential source in the purchasing processes at 1%—down from 3% in 2022—ranking behind industry experts, professional colleagues/networks, internal influencers, and online reviews from peers, among other sources.
The reason for this? B2B buyers are looking for simple, personalized, and trustworthy tools, just like they do in their personal lives. After all, if we turn to peer reviews and other sources to inform our decision to purchase a $100 pair of shoes, why wouldn’t we do the same for a piece of software that will usurp tens of thousands of dollars of a precious annual budget (not to mention, the time and resources involved with implementing a new tool!)?
Considering that most buyers expect a return on investment (ROI) on their software within six months to a year, every purchasing decision is critical, especially in the current economic climate. With these factors in mind, the consumerization of B2B buying via self-serve channels throughout the purchase journey is proliferating, and AI is accelerating the trend rapidly.
AI’S ROLE IN SALES AND MARKETING IS PIVOTAL
As software buyers demand convenience, speed, and productivity, software vendors have an opportunity to tap AI in a number of ways. When it comes to the way a company goes to market, AI can and should be leveraged.
According to a recent HubSpot survey, 80% of sales professionals say AI and automation tools can help them spend less time on manual tasks, 71% already find that AI and automation tools are helpful for prospecting, and 60% say that AI tools are important in their overall sales strategy.
For sales and marketing teams, AI has an opportunity to automate the majority of tedious and repetitive tasks, allowing teams to focus on uniquely human connection and creation. For example, with AI sales assistants, the revenue team can spend more time fostering relationships with customers and prospects, while marketers can embrace AI writing assistants to focus on brainstorming new creative ideas and campaigns.
When it comes to content in particular, software-as-a-service (SaaS) companies must strategically infuse their company data and insights into the fabric of content creation. If they fail to do so, they risk not standing out from competitors and will simply be added to the infinite sea of AI-generated noise.
EVERY KNOWLEDGE WORKER HAS AN OPPORTUNITY
Sales and marketing professionals are not the only ones primed for excellence when armed with their handy AI assistants. We all have an opportunity to embrace AI to be 10x more effective and productive in our work.
When the internet emerged and became readily available, everyone had to learn how to use it. Now, we can hardly imagine our workdays without it. The same goes for AI. Every knowledge worker and decision-maker needs to learn how to carefully use AI to achieve results.
Learn the right inputs, learn how to teach the models, and train the algorithms. Employees who use it will simply be better at their jobs, which ultimately will create more successful companies.
UNLOCKING AI’S FUTURE REQUIRES WIDESPREAD ADOPTION AND TRUSTED DATA
While many have embraced AI, most have not explored its true potential at this point. This lack of adoption is what’s holding AI back from making a radical impact on B2B SaaS. Increasing quality and trust in data will lead to increased adoption. This is why every software company will eventually become a data company in this age of AI.
Once AI is truly embraced, it won’t just be about efficiency; it will help foster genuine connections between software sellers and their potential customers. AI has the power to broaden the landscape of software available to prospective buyers, connecting them with the most suitable solutions in the market, regardless of their role, language, or location.
We have not yet reached a point of radical change with AI, but it is undoubtedly transforming the way software is developed, marketed, purchased, and sold. By continuing to innovate with AI and adapting to evolving buying behaviors, SaaS companies will accelerate growth in the years ahead. Those who ride this big wave stand to reap significant benefits in the years to come, while those who do not, risk being left behind.
Godard Abel is Co-Founder and CEO at software marketplace G2. Previously, he was Founder and CEO at BigMachines and CEO for SteelBrick.