a16z: Why Artificial Intelligence Will Transform the Next Generation of Sales Technology

This article primarily discusses how Artificial Intelligence (AI) is poised to revolutionize future sales technology, emphasizing that AI will reshape sales processes and workflows, potentially leading to fundamental changes in the existing sales software stack. In the competition between every startup and established company, it essentially boils down to who can secure distribution rights before the other can innovate. In the realm of sales technology, it's easy to assume that incumbents like Salesforce and Hubspot have the advantage. However, with the advent of AI, the core systems of record and sales workflows of these companies may be fundamentally reshaped. AI is not only capable of extracting customer insights from a variety of modalities such as text, images, speech, and video but can also automate sales processes like prospect research and call preparation. The article further explores how AI can change sales activities and how emerging AI-native sales solutions are not just AI-enhanced versions of existing categories but can enable new proactive sales actions and serve a multitude of use cases.

1. Introduction
In the battle between startups and incumbents in sales tech, incumbents like Salesforce and Hubspot seem to have an edge. However, AI may reimagine the core system of record and sales workflows, making no one safe.

2. A new system of record

Incumbents like Salesforce and Hubspot were built on relational databases and later the cloud, with a structured representation of sales opportunities. But data became siloed.
The next sales platform could be unstructured and multimodal with LLMs, including various data sources, and the LLM would constantly ingest data.
3. Redefining workflows
Common sales activities may change or disappear, and new ones will emerge.
For example, SDRs can use AI for outbound messages, AEs get summaries and action items, and sales enablement teams can send relevant materials. New activities include providing ranked lists of ready buyers, notifying about expansion opportunities, and providing live coaching and personalized collateral.
4. Early days of the future
AI-native sales solutions are enabling new motions and evolving. Point solutions are overlapping.
Categories for AI applications in sales include Intelligent Pipeline (e.g., Clay’s enrichments), Digital Workers (e.g., 11x), Sales Enablement + Insights (e.g., Naro), and CRM + Automations (e.g., Day).
5. Market impact
Sales, marketing, and customer success will blend: With shared context and insights, teams will collaborate better, and job functions may blend. Quotas could be redesigned for team-based collaboration.
Fluid GTM strategies: Companies may reorient resource allocation based on customer needs, and brand strategies may change to cater to different buyer personas.
Per seat pricing → outcome-based pricing: AI-native software may end seat-based pricing. The question is which metrics to use for billing. Outcomes range from unqualified leads to deal closing, with different pricing implications.
6. Conclusion
AI will not only streamline current sales activities but also reimagine processes and workflows. The seller-buyer relationship and GTM strategies will evolve, and the sales software stack will be different in the future.