Choose Your Own Adventure: Which AI Business Model Is Right For You? [Forbes]
Zendesk, Inc. (ZEN)
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Source: Forbes
Kespry, which uses aerial drones to assess storm damage on houses for insurance, is an example of one successful AI business model. Kespry Artificial intelligence is revolutionizing every aspect of work and life, as nonstop news headlines make clear. Yet one aspect of the AI disruption remains relatively unexamined: the right business model for AI companies. It’s a commonly held belief that successful AI startups, like cloud / SaaS companies before them, share a common business model. Like AI, cloud software’s business model initially puzzled customers and investors. Cloud pioneer Salesforce, for instance, eschewed the big, upfront license payments common with traditional software vendors, and also shunned recurring maintenance fees and costly on-site installations. Now, the Salesforce model is the norm for cloud/SaaS companies—and investors can recite common SaaS company metrics like magic number, CAC and LTV in their sleep. But it’s difficult to graft this c
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