PodcastsThe Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch20Product: Enterprises are not Adopting AI Yet, When Will AI Break Into Enterprise, What are the Blockers, What Do Enterprises Need from AI & Why Services Companies Will Win in the Next 10 Years of AI Implementation with Howie Liu, Founder & CEO @ Airtabl

20Product: Enterprises are not Adopting AI Yet, When Will AI Break Into Enterprise, What are the Blockers, What Do Enterprises Need from AI & Why Services Companies Will Win in the Next 10 Years of AI Implementation with Howie Liu, Founder & CEO @ Airtabl
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The PitchThu Aug 24 2023
Scaling into Enterprise:
- Moving from PLG to enterprise presents challenges.
- Hitting the $1M contract mark is a threshold for being considered a real enterprise account.
- Airtable signed their first $1M ARR contract about four years after launch.
- Timing and product changes are important when scaling into enterprise.
Enterprises and AI Adoption:
- Enterprises are not jumping on AI yet.
- Enterprises are still trying to figure out what AI can do and its limitations.
- Lack of understanding and education about AI is a barrier to adoption.
- Data privacy concerns and trust in cloud-hosted providers also hinder adoption.
Changing Sales Process:
- Bundling of tools within large enterprises is happening.
- Certain categories and vendors may be more vulnerable than others.
- Vendors need to prove their value to CFOs to remain in budget.
- Customer success process has changed with tightening budgets.
Airtable's Funding Journey:
- Benchmark led Airtable's Series C round, which was unusual as they typically only invest in Series A rounds.
- Post-product-market fit, everything is not necessarily smooth sailing.
Lessons Learned from Founding Airtable:
- It's important to think beyond just product-market fit and consider the right product strategy that aligns with an effective go-to-market model.
- Designing a go-to-market model that pairs well with the product dynamic is crucial for success in enterprise sales.
Advancements in AI:
- Advancements in AI have the potential to be as significant as the introduction of cloud computing.
- Gen AI has the ability to automate or accelerate a broad range of knowledge work across various functions and industries.
What Enterprises Want from AI:
- Enterprises are still early in understanding what AI can do and how it can benefit them.
- Commonalities include interest, exploration, and desire for specific use cases where AI can disrupt key processes.
Implementation Challenges for Enterprises:
- Enterprises face challenges around data privacy, technical implementation, accuracy, and safety of AI models.
- Enterprises are still in the education phase and need help understanding what AI is capable of.
Services Companies and AI Implementation:
- Services companies will play an important role in helping enterprises integrate AI into their operations.
- They provide technical expertise and guidance on implementing AI solutions.
- Services companies may be some of the biggest winners in the next few years of AI implementation.
Product Market Fit and Valuation:
- Product market fit is just the beginning of building a business.
- Valuations are an outcome metric that depends on execution efforts.
- Focus should be on driving durable growth rather than chasing valuation.