Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

The Power of AI in Business: Leveraging Technology for Success

2 Jul 2024 · 1 min

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0:46

Short excerpt of a conversation (host and Jason M. Lemkin) about how AI integrations can change business pricing power and revenue extraction from existing customers. The host suggests large incumbents like Salesforce can embed generative AI (or AI-enabled storage features) to extract more value and charge higher prices; Lemkin counters with Dell’s experience, noting increased server shipments but lower margins and no net improvement, implying AI’s benefits may not straightforwardly translate to higher net profits for incumbents.

Chapters

I not allow them to have so much more juice in their customer base. And what I mean by that is like Salesforce have the distribution box have the we've mentioned that incredibly high saturation. They can integrate generative AI or you name it. Like Aaron on the show talked about integrating AI into their storage solution so you could extract knowledge way more efficiently from the docs you have. Does that not allow for a much more increased ability to price far higher and actually they will be able to leverage AI to get a lot more money out of their existing customers.
You know we'll see. You know Dell also had a miss. It wasn't as big a deal as Salesforce and Mongo and DB and what Dell said is look, there are a little bit of benefits from AI and that we're shipping more servers but our margins are down and netnet we're not doing any better. It's not helping us net net Salesforce.