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B2B SaaS in the AI era is impossible?

Jan 20, 2024 - news.ycombinator.com
The article discusses the challenges faced by startups in convincing B2B clients to use their AI products as Software as a Service (SaaS), due to companies' fear of data security. Companies are hesitant to allow their internal data to be accessed by AI applications, fearing the data might be sent to AI APIs or stored in external databases, which hampers the sales of these AI products.

The author finds this fear irrational as companies already store their data on external servers like Confluence, Notion, Slack, Zendesk, etc. The article poses a question on how startups can persuade B2B clients to adopt AI products as SaaS rather than opting for self-hosted or self-deployed solutions that resemble consulting more than SaaS.

Key takeaways:

  • Enterprises' ultimate applications often require access to all internal data for AI functionality.
  • Companies are generally hesitant to allow their data to be sent to AI APIs or stored in external databases due to security concerns.
  • Ironically, these companies already store their data on external servers like Confluence, Notion, Slack, Zendesk, etc.
  • Startups face the challenge of convincing B2B clients to use their AI products as SaaS instead of opting for self-hosted/self-deployed solutions that resemble consulting more than SaaS.
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