The primary threat from AI disruptors isn't immediate customer churn. Instead, incumbents get "maimed"—they keep their existing customer base but lose new deals and expansion revenue to AI-native tools, causing growth to stagnate over time.

For established software companies with sluggish growth, the path forward is clear: find a way to become relevant in the age of AI. While they may not become the next Harvey, attaching to AI spend can boost growth from 15% to 25%, the difference between a viable public company and a sale to a private equity firm.

Focusing on AI for cost savings yields incremental gains. The transformative value comes from rethinking entire workflows to drive top-line growth. This is achieved by either delivering a service much faster or by expanding a high-touch service to a vastly larger audience ("do more").

While 2023 was a grace period for AI adoption, the tools matured significantly in 2024. Companies that failed to leverage agentic AI products to re-accelerate growth are considered to have fundamentally underperformed, as the opportunity was clear and present.

Data from RAMP indicates enterprise AI adoption has stalled at 45%, with 55% of businesses not paying for AI. This suggests that simply making models smarter isn't driving growth. The next adoption wave requires AI to become more practically useful and demonstrate clear business value, rather than just offering incremental intelligence gains.

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.

Initially viewed as a growth driver, Generative AI is now seen by investors as a major disruption risk. This sentiment shift is driven by the visible, massive investments in AI infrastructure without corresponding revenue growth appearing in established enterprise sectors, causing a focus on potential downside instead of upside.

Adding a chat interface or minor "AI features" won't unlock new budget. To capture significant AI spend, your product must either replace human headcount, make users dramatically more effective, or provide an order-of-magnitude productivity increase.

With nearly every public B2B company now featuring AI, the novelty has worn off. 'AI washing' by adding a simple co-pilot is no longer a differentiator. To succeed, companies must use AI to create genuinely disruptive products that solve problems in ways that were previously impossible.