The State of Gen AI insiders Report FINAL 0724 - Flipbook - Page 16
HOW THE
PROLIFERATION
OF GENERATIVE
AI THREATENS
PRODUCT-LED
GROWTH
Generative AI fundamentally requires a
value deals at revenue-maximizing prices, a
differently designed go-to-market approach,
well-trained sales team still wins out over
favoring an enterprise motion over product-
product-led growth. .
led-growth. Product-led-growth (aka
"freemium models") has fast become
To build a proprietary data flywheel, a business
outmoded with the emergence of generative AI
will have to have access to data across
costs, the need to reach economic buyers faster
all business functions and user accounts.
and the critical nature of building a proprietary
Applications and use cases will be limited by
data flywheel on day one.
whatever the access to breath and depth of
data is. Product-led growth does not lend itself
As we discussed in the previous section,
to this data set given today’s compliance and
businesses must keep in mind that a generative
regulatory rules that will keep expanding.
AI tax will hit them sooner than later and should
watch for free trial or low cost entry
experiments. Even if these tactics take off, they
will face a stiff tax bill around the corner.
Product-led bottoms up motion isn’t more
efficient in reaching an economic buyer over an
enterprise tops down sales approach.
Particularly in today’s environment with
expected consolidation around product
services, it’s important to get to an economic
buyer faster. When it comes to selling high-
THE STATE OF GENERATIVE AI INSIDERS REPORT
Generative AI products are
themselves actually changing
every few weeks. Whatever we
build today will most likely have to
be redone three weeks from now.
Arvind Jain
CEO & Co-founder
Glean
16
