2024: The AI Explosion Hits Enterprise Software (and How to Prepare)

2024: The AI Explosion Hits Enterprise Software (and How to Prepare)

The consumer AI revolution is already here! ChatGPT has over 180 million users. With chatbots and AI assistants now part of our daily lives, what about the enterprise?

In 2024, B2B founders find themselves at a critical juncture, with the AI-driven paradigm shift in business looming in the foreseeable horizon. The advent of consumer AI chatbots has given millions of people a first-hand taste of the next iteration of human-computer interface. Just like consumer email led to enterprise communication solutions like Slack and cloud computing paved the way for cloud storage solutions like Dropbox and Box, the consumer AI boom is the precursor to a wave of AI-powered enterprise software.

Why now?

We have spent the last two decades generating an unprecedented amount of data and have struggled to extract insights from these data. Here comes a new generation of AI that excels at what we humans struggle with: making sense of vast data and automating complex tasks. Imagine search tools that truly understand your intent, collaboration tools that anticipate your needs, and infrastructure that self-heals before serious problems arise. That’s the future, the age of Predictive Computing, and it’s arriving fast.

This generational system and business tools makeover will be wide and deep, spreading across both horizontal and vertical business sectors:

• All businesses need Neural Network embedded, Gen AI enabled applications. It is one thing to add chat, image or video capabilities with AI, it is a whole different matter with AI assisting business processes. A new architecture and system software stack — Middleware — will be needed to enable the development of a whole new generation of packaged SaaS applications and internal business specific business applications. This new middleware stack must provide easy to use (AI co-piloted) application development and debugging tools, transactional database support, security and access control, model observability, model training, fine tuning, RAG, and all other key components needed for repeatable, rapid and maintainable development and deployment of these Gen AI business applications.
• Horizontal sectors such as data infrastructure, privacy, collaboration, and security: Think of the tools we all use, from search, to analytics to workflow automation. Infrastructure management will see even more automation, with self-healing networks becoming a reality. And new “picks and shovels” players will emerge, helping companies with limited AI expertise leverage this revolution.
• Vertical sectors: Even the most regulated industries will be impacted. From enhancing data management and automation to revolutionizing sector-specific applications in finance, healthcare, and telecom, the potential for AI to drive efficiency, innovation, and growth is immense. In finance, expect AI-driven risk management, fairer lending practices, and hyper-personalized financial advice. Healthcare will see AI-integration transforming disease detection, improving accessibility and aging care, automating even more procedures. Telecom will benefit from network optimization, predictive maintenance, and enhanced security. And the list goes on.

The message for B2B founders is clear: the time to grind is now. Early movers like Databricks, Vectara and Opaque Systems are already pioneering this transition, forging the emergence of a new generation of enterprise-grade AI solutions. We know 2023 has been a test of endurance — the race to reach product-market-fit, and log-scale sales growth has never been fiercer as many of you sprint to reach the next funding milestone. My team at Race Capital understands the unique challenges founders face. Helping enterprise and B2B founders solidify product-market fit, develop and execute realistic sales plans is where our expertise lies.

Our founder-first approach helps you:

• Nail product-market fit and customer profile: We’ll guide you through our time-tested process in perfecting PMF and ICP.
• Ignite sales: We’ll share with you tried-and-true enterprise sales techniques.
• Prepare for the future: We ensure you’re ready to seize every opportunity.

As the saying goes, luck is when preparation meets opportunity. At Race, we want our founders to be the luckiest startups when the next wave of opportunities arrives.

Building in one of the highlighted sectors above? Have a launched product but seeking PMF and ICP refinement for explosive sales growth? Feel free to reach out to us at deals@race.capital. As an early stage fund, our doors are always open to help founders who have a clear understanding of what their next milestone is, and what type of help they need.