Buying AI: The Procurement Playbook
AI is reshaping the world of procurement faster than teams can adjust. Here's how to keep up.
What you'll learn:
- How SaaS vendors are restructuring pricing to monetize AI
- The negotiation tactics and levers you need to pull to cope
- 6 evaluation criteria to ensure you are getting the best deal without sacrificing security, budget and your data
Plus, get actionable guidance on how to evolve your procurement function so it's geared up to effectively deal with the inevitable growth of AI SaaS.
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AI is disrupting the economics of SaaS pricing
Traditional flat-fee or per-user pricing models don't work in the variable and dynamic world of AI functionality. And vendors have been quick to realize this - shifting models and contracts to better align with this new reality.
- Outcome-based pricing lowers adoptions barriers and removes limits on users or data input, but risks unpredicatable and uncontrollable costs.
- AI features are being offered as premium add-ons, or incentives to upgrade to higher-tier subscriptions - elevating company costs.
- New AI-specific contract clauses, such as IP rights and broader performance metrics, are designed to enhance monetization and tool stickiness.
- The SaaS AI "moat strategy" used by enterprise vendors are locking customers into their tech ecosystems for the long haul.
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The new evaluation criteria
Without a new evaluation playbook, wasted spend on technology will soar ever higher - already at damaging levels for businesses.
Such evaluation criteria include:
- Define objectives and use cases in microscopic detail
- Check the quality of your, and the vendor's, data
- Ensure your personnel are ready to adopt AI, with the skills and change procedures to cope
- Qualify if what you're buying is in fact AI, and not basic automation or analytics dressed up with marketing buzz
Make sure you're ready to effectively buy AI with this Procurement Playbook
This report is designed to help steer your AI-buying strategies in the right direction - so you gain confidence in your purchasing decision