Jul. 9 at 6:45 AM
$CRM $ADBE $ACN AI is probabilistic and when compounded over multi step workflows to build complex enterprise software, the small error rate becomes big and makes software useless. So anybody imagining AI will rewrite SAAS is most likely daydreaming. But by providing natural language to function calling mapping, it enables headless CRM for simple use cases and provides value where probabilistic outcomes are good enough like customer service. So AI is a value add on top of SAAS and practically in enterprise applications, the only real beneficiaries and enablers of AI are the incumbents. AI is magical and God level efficiency for creating prototypes but useless to marginally useful for production grade enterprise software. These incumbents are most likely to get a incremental boost in revenue from AI but are being treated like failures which is ironical and yet provide us with great opportunity. I think in a year or two, both multiples will rerate and FCF will increase.
