The true ROI of AI lies in reallocating the time and resources saved from automation towards accelerating growth and innovation. Instead of simply cutting staff, companies should use the efficiency gains to pursue new initiatives that increase demand for their products or services.

Don't view AI through a cost-cutting lens. If AI makes a single software developer 10x more productive—generating $5M in value instead of $500k—the rational business decision is to hire more developers to scale that value creation, not fewer.

Previous technology shifts like mobile or client-server were often pushed by technologists onto a hesitant market. In contrast, the current AI trend is being pulled by customers who are actively demanding AI features in their products, creating unprecedented pressure on companies to integrate them quickly.

In the current market, AI companies see explosive growth through two primary vectors: attaching to the massive AI compute spend or directly replacing human labor. Companies merely using AI to improve an existing product without hitting one of these drivers risk being discounted as they lack a clear, exponential growth narrative.

C-suites are more motivated to adopt AI for revenue-generating "front office" activities (like investment analysis) than for cost-saving "back office" automation. The direct, tangible impact on making more money overcomes the organizational inertia that often stalls efficiency-focused technology deployments.

Selling foundational AI isn't a standard IT sale. It requires a dual-threaded process targeting the CTO, who builds the agents, and the CRO, who must monetize them. The key is educating the CRO to shift from selling seats against IT budgets to capturing value from larger headcount and outsourced labor budgets.

Historically, labor costs dwarfed software spending. As AI automates tasks, software budgets will balloon, turning into a primary corporate expense. This forces CFOs to scrutinize software ROI with the same rigor they once applied only to their workforce.

Companies using new technologies merely to cut costs and boost margins often fail. The winning strategy, proven during the containerization era by firms like Walmart, is to pass efficiencies to consumers. This drives volume and captures the market, a superior playbook for AI adoption.

Instead of focusing on AI features, understand the two mental shifts it creates for customers. It either offers a superior method for an existing, tedious task ("a better way") or it makes a previously unattainable goal achievable ("now possible"). Your product must align with one of these two thoughts.