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The Generative AI Disruption on SaaS Growth and Churn Rates

with the Metrics Brothers

McKinsey recently published a report entitled "Navigating the Generative AI Disruption in Software" that Dave "CAC" Kellogg and Ray "Growth" Rike discuss in his episode.

Some of the primary topics discussed include:

  • GEN AI penetration velocity today vs SaaS in the early days

  • GEN AI impact on switching from traditional SW/SaaS vendors

  • Where will the rewards of Gen AI go

  • Impact on SaaS Growth and Churn Rates

One of the most interesting parts of the report and this episode is that expansion growth rates of software will increase for those with embedded generative AI. In addition, the adoption of Generative AI solutions will be spread across three primary modalities of Gen AI software including:

  • Native Generative AI Point Solutions

  • Broader platforms with embedded Generative AI

  • Internally developed Generative AI software

If you are a traditional SaaS company and are looking to navigator the unchartered waters of the Generative AI software era, the McKinsey report and this episode are great sources of ideals and insights.

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