AI giants are rewriting the enterprise playbook

AI Center of Excellence Leader, PwC Switzerland

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In the rapidly evolving landscape of enterprise software, AI-powered general purpose chatbots are emerging as a transformative force - and a potential liability. While these tools follow familiar SaaS adoption patterns, their unprecedented versatility and accessibility create both opportunities and challenges for organizations. As employees increasingly adopt these powerful AI assistants, companies face a critical imperative: establish robust governance frameworks while supporting innovation, or risk losing control over data security, compliance, and operational consistency. The key to success lies in proactively delivering enterprise-grade AI tools that balance employee empowerment with proper oversight.

The old playbook is getting an AI upgrade

The classic SaaS playbook has been a staple of the tech industry for many years: identify user personas, offer a low-barrier entry point, build viral features, make use of internal champions and gradually expand from individual users to enterprise-wide adoption. But what happens when the software in question isn’t just a specialised tool, but a versatile AI assistant that can potentially revolutionise every aspect of work?

Enter the era of GPT-4, Claude and co. These large language models (LLMs) aren’t confined to a single department or use case. They’re the Swiss Army Knives of the digital world, capable of helping with everything from coding and data analysis to creative writing and customer service.

The new quest for the Holy Grail

In this new landscape, the quest for enterprise adoption is similar to seeking the Holy Grail. Here’s why:

Universal applicability

Unlike traditional software that solves specific problems, AI chatbots can be applied to almost any task involving language and reasoning. This universal applicability makes them invaluable across all departments and roles.

Low barrier to entry, infinite ceiling

Most AI providers offer free or low-cost tiers that allow individuals to start experimenting immediately. But there are virtually no limits to the potential for advanced, customised enterprise solutions.

Viral by nature

The ‘wow factor’ of AI chatbots naturally encourages sharing. When an employee discovers a brilliant use case, they’re likely to demonstrate it to colleagues, sparking organic growth within the organisation.

Continuous innovation engine

Each interaction with these AI models potentially contributes to their improvement, creating a continuous cycle of innovation that benefits both the user and the provider.

The innovation flywheel

What makes this new playbook truly revolutionary is the innovation flywheel it sets in motion:

Individual experimentation

Employees start using the free or low-cost version of the AI chatbot for various tasks.

Use case discovery

Through experimentation, individuals discover novel applications that significantly boost their productivity or solve long-standing problems.

Internal advocacy

Excited by the possibilities, these early adopters become vocal champions within their organisations, demonstrating the value to colleagues and management.

Enterprise adoption

As the buzz grows and the potential ROI becomes clear, organisations invest in enterprise-grade versions with advanced features, security and support.

Expanded use cases

With full organisational backing, employees across all departments find new and innovative ways to leverage the AI, further driving its value.

Data and feedback loop

The increased usage provides valuable data and feedback to the AI providers, allowing them to refine and improve their models.

Enhanced capabilities

Improved models lead to even more powerful and versatile AI assistants, restarting the cycle at an even higher level.

“This flywheel effect isn’t just beneficial for the organisations adopting the technology; it’s the engine driving the entire AI industry forward. The more these models are used in diverse, real-world scenarios, the more valuable they become, justifying the enormous costs associated with training and improving them.”

Sebastian Ahrens, Director & AI Center of Excellence Leader, PwC Switzerland

The justification for increasing costs

As this flywheel gains momentum, it provides a compelling justification for the astronomical costs associated with training and running these advanced AI models:

Real-world value creation

The diverse applications discovered by users across various industries demonstrate tangible ROI, far exceeding the investment in model development.

Competitive advantage

Organisations that effectively leverage these AI tools gain significant advantages in efficiency, innovation and problem-solving capabilities.

Continuous improvement

The feedback loop ensures that the models are constantly improving, providing ever-increasing value to users and organisations.

Network effects

As more organisations adopt these AI tools, the collective knowledge and use cases grow, making the tools even more valuable for everyone.

Conclusion: a new era of enterprise innovation

The transformation of the SaaS playbook by AI chatbots represents more than just a new sales strategy; it’s ushering in a new era of enterprise innovation. By putting powerful AI tools directly in the hands of individuals across organisations, we’re unleashing a wave of creativity and problem-solving that was previously unimaginable.

As this flywheel continues to gain momentum, not only can we expect to see incremental improvements in productivity, but also radical transformations in how work is performed across all sectors. The quest for the AI Holy Grail isn’t just about adopting new technology; it’s about reimagining the very nature of work itself.

In this new paradigm, the success of AI providers is inextricably linked to the success of their users. As organisations innovate and thrive with these tools, they justify and fuel the continued advancement of AI technology. It’s a virtuous cycle that promises to drive progress not just in the tech industry, but across the entire economy.

The future of enterprise software isn’t just in the cloud, it’s in the boundless potential of artificial intelligence, unlocked by one innovative individual after another.

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Sebastian Ahrens