Don't pay per seat for A.I. Agents.

SAAS companies are trying to pull a fast one and price in their AI add-ons per seat. This is an attempt to force fit autonomous AI into their legacy model. We break it down in today's post.

In this post we look at the potential path ahead of how businesses will look at their SAAS ecosystem and where AI will have impact is usage and licensing.

The bottom line every business has to make a decision on whether they are going to deploy “AI Add-Ons” from their SAAS providers or deploy a more independent solution where AI connects to their SAAS apps but they maintain ownership and control over their model and AI agents.

There are pros and cons with both approaches in the short term, but it is clear that long term every business should have control and ownership of their AI models and agents to drive the biggest ROI and leverage AI innovation throughout their entire business.

SAAS Add On AI (e.g. Zendesk, Hubspot)

• PRO: Easy to deploy (upgrading existing seat licenses) and Integrated into the SAAS app.

• CON: Limited functionality, pricing per seat, no ownership or visibility into the model or AI agent. Typically limited use case and functionality.

AI Platform

• PRO: No seat licensing. Own model and AI agents. Ability to integrate across SAAS apps instead of being only for one SAAS app. More flexibility to build powerful autonomous Agents.

• CON: Requires a launch platform to build and deploy agents (yes, this is what raia solves 😀). Requires custom training and integration.

Embracing Autonomous AI Agents to Reduce Seat Licensing

The SaaS (Software as a Service) industry has experienced tremendous growth in recent years, with businesses across various sectors adopting cloud-based solutions to streamline operations and improve efficiency. One of the most significant challenges faced by businesses is the cost of seat licensing, which can add up quickly, especially for companies with multiple employees using the same application. However, with the advent of autonomous AI agents, businesses can revolutionize the way they operate and significantly reduce their seat licensing needs.

Autonomous AI agents are designed to perform tasks independently, without human intervention, and are increasingly being used in various industries, including customer support, sales, and marketing. These agents can process vast amounts of data, learn from it, and make decisions autonomously, freeing up human employees to focus on high-value tasks. In the context of SaaS licensing, AI agents can replace many user roles that currently require seat licenses, leading to significant cost savings for businesses.

Use Cases: AI Agents Replacing Human Employees

Let's consider a few examples of how AI agents can reduce the need for seat licenses:

1. Customer Support: In a typical customer support scenario, a support representative may use multiple systems, such as a CRM (Customer Relationship Management) tool and a ticketing system, to manage customer inquiries and issues. Each of these systems may require a seat license, which can cost upwards of $50 per month. With an AI agent, support representatives can focus on high-level issues, while the AI agent handles routine tasks, such as ticket triage, response generation, and resolution. This not only reduces the need for seat licenses but also improves the overall efficiency of the support process.

2. Sales Qualification: Sales teams often spend a significant amount of time qualifying leads, which can be a time-consuming and labor-intensive process. AI agents can be trained to qualify leads, identify potential customers, and even generate sales emails and follow-up calls. This reduces the need for sales representatives to spend time on lead qualification, freeing them up to focus on high-value activities, such as building relationships with customers and closing deals.

3. Data Entry: Data entry is a tedious and error-prone task that often requires manual intervention. AI agents can be trained to automatically extract data from various sources, such as emails, documents, and websites, and enter it into relevant systems. This not only reduces the need for employee time but also minimizes errors, improving data accuracy and integrity.

Business Benefits of Embracing AI Agents

By embracing the use of AI agents, businesses can reap numerous benefits, including:

1. Cost Savings: Reduced seat licensing costs, which can add up quickly, especially for businesses with multiple employees using the same application.

2. Improved Efficiency: AI agents can automate routine tasks, freeing up human employees to focus on high-value activities, such as strategy development, customer relationship-building, and innovation.

3. Enhanced Customer Experience: AI agents can provide 24/7 support, responding to customer inquiries and issues in real-time, improving customer satisfaction and loyalty.

4. Scalability: AI agents can handle an increased volume of work, without requiring additional human resources, making them an attractive solution for businesses experiencing rapid growth.

5. Better Decision-Making: AI agents can analyze vast amounts of data, providing businesses with valuable insights and recommendations to inform strategic decisions.

The Future of SaaS Licensing: A Shift in Focus

As AI agents become increasingly prevalent in the workplace, the SaaS industry will need to adapt to this new reality. Instead of focusing solely on seat licensing, SaaS providers will need to develop pricing models that account for the reduced need for human intervention. This could include:

1. API-based Pricing: SaaS providers could offer API-based pricing, where businesses pay per API call or data entry, rather than per seat license.

2. Usage-based Pricing: Providers could offer usage-based pricing, where businesses pay based on the level of usage, such as the number of tickets resolved or data entry tasks completed.

3. Subscription-based Models: SaaS providers could offer subscription-based models, where businesses pay a fixed monthly fee for access to the application and AI agent services.

Conclusion

The future of SaaS licensing is dramatically changing, driven by the increasing adoption of autonomous AI agents. As businesses continue to automate routine tasks, the need for seat licenses will decrease, forcing SaaS providers to adapt to new pricing models. The benefits of embracing AI agents are clear, including cost savings, improved efficiency, enhanced customer experience, scalability, and better decision-making. By understanding the future of SaaS licensing and adapting to this new reality, businesses can stay ahead of the curve and thrive in an increasingly automated world.