Your weekly briefing on all things AI
Presented by Clark Valberg

AI is forcing companies to rethink their business models—whether by lowering barriers to entry in SaaS, automating financial analysis, or enabling cost-efficient global expansion. This week, we look at how AI is reshaping competitive landscapes, pressuring incumbents to adapt, and creating new opportunities for those who move fast. The AI agent industry is just getting started, and tailored autonomous workflows will make a significant impact where SaaS couldn’t: actually doing the tasks that need to be done.

Let’s dive in… 

>AI Makes SaaS Extremely Vulnerable
>OpenAI Hints at $20k/Month Tier
>Robots in Japan Fill Elderly Care Gaps
>AI Tool For Wholesale/Manufacturer Quoting
>Nvidia Backed CoreWeave Estimated to IPO ~$32B Valuation
>Prompting Tip: Tell Your LLM to Think Before It Speaks

Featured Story: AI Disrupts SaaS— DocuSign Copycat Built in 2 Days

The Software-as-a-Service (SaaS) industry is undergoing a transformation as AI accelerates software development. Santosh Sharan, former COO of RB2B, has been tracking this trend for some time and recently highlighted a striking example: Michael Luo, a product leader at Stripe used AI tools to recreate a basic version of DocuSign in just two days. This example underscores how AI is lowering the barrier to software replication, raising important questions about its impact on established SaaS providers and the broader competitive landscape. Key stats Santosh mentions:

The Changing Economics of SaaS

• SaaS prices are rising – The average cost of SaaS jumped 12.8% in 2024, with 73% of vendors raising prices since 2022.

• AI is driving costs down – Development cycles have shrunk dramatically with AI copilots, enabling near-instant SaaS replication.

• A $450B opportunity – The U.S. SaaS market is ripe for disruption, with over $450B spent across 20,000 SaaS applications in 2024.

How SaaS Disruption Could Unfold

1️⃣ Rise of Low-Cost SaaS Agencies – AI-powered development agencies will offer tailored, budget-friendly SaaS alternatives, undercutting traditional vendors.
2️⃣ Enterprise-Driven Customization – Large companies with high SaaS costs will increasingly build or switch to cheaper, AI-powered alternatives.
3️⃣ Premium SaaS Vendors Must Adapt – Growth teams will need to revise pricing strategies, increase switching costs, and enhance platform value to retain customers.
4️⃣ Flexible Pricing Models Will Win – Traditional per-seat pricing is fading, replaced by enterprise-wide and usage-based models.
5️⃣ Premium SaaS Faces Churn Risk – Companies that fail to adjust will see customers migrate to lower-priced, AI-driven alternatives.

The Bottom Line

AI has entered the "SaaS photocopier" era—where premium SaaS products can be rapidly cloned and customized at a fraction of the cost. As the cost of replication drops, the days of unchecked SaaS price hikes may be over. Meanwhile, the value being created by AI agents is exponential and high value for tailored opportunities

Are SaaS companies ready for this shift? The next 18-24 months could redefine the industry. (Santosh Sharan)

More Stories

• OpenAI Reportedly Plans $20K/Month AI Agents – OpenAI is discussing launching high-end, specialized AI agents for enterprise use, with pricing reaching up to $20,000 per month. (TechCrunch)

• TripleWhale, a Tiferes Portfolio Company, Showcases Astonishing Agent Capabilities — AJ Orbach, TripleWhale co-founder, demoed a creative analyst bot on X that watches videos, provides insights on why performance may vary from benchmark, and recommends concepts for iteration. (AJ Orbach)

• Another Tiferes Portfolio Company, CuspAI, Appoints Another AI Pioneer, Yann LeCun, to Advisory Board – AI-driven materials discovery startup CuspAI has enlisted the Cheif AI Scientist at Meta, Yann LeCun, to its advisory board, strengthening its leadership in AI innovation. (Sifted)

• Gong Surpasses $300M ARR, Indicating IPO Potential – Revenue intelligence platform Gong has exceeded $300 million in annual recurring revenue, signaling a potential path toward an IPO. (TechCrunch)

• Scale AI Lands Major Defense Contract – Scale AI has secured a multimillion-dollar deal with the U.S. Department of Defense, underscoring AI’s growing role in military applications. (CNBC)

• Aldi US Leverages AI for Product Descriptions – Aldi US is deploying AI-powered automation for product descriptions, improving efficiency while maintaining competitive pricing. (Retail Insight Network)

• Google Expands AI Search Capabilities – Google has introduced an "AI mode" in Search, offering more conversational and context-aware responses to complex queries. (Google)

• AI's Role in Legal Work Evaluated – A randomized trial suggests AI can enhance legal work efficiency but still requires human oversight to ensure accuracy and nuance. (Ethan Mollick)

• Deutsche Telekom Unveils AI-Powered Smartphone – Deutsche Telekom has debuted a new AI-first smartphone, integrating Perplexity’s AI-powered search for a smarter mobile experience. (Telekom)

Real Estate | AI Expands Property Valuations & Market Predictions

Hive MLS and SourceRE have formed a long-term partnership to enhance AI-driven real estate analytics. Their platform aims to improve property valuations, provide more accurate market forecasts, and offer realtors better data for investment decisions. (Morningstar)

Healthcare & Biotech | AI Robots Address Caregiver Shortages in Japan

Japan is integrating AI-powered nursing robots to support its aging population, assisting with patient mobility, monitoring, and basic care tasks. The initiative aims to reduce strain on healthcare workers while maintaining quality care, though concerns remain about the human touch in elder care. (Reuters)

Finance & Banking | Palantir Expands AI for Risk & Fraud Detection

Palantir and TWG Global are increasing investments in AI-driven financial analytics, enhancing risk assessment, fraud detection, and investment modeling. This move highlights AI’s growing role in financial decision-making and regulatory compliance. (Yahoo Finance)

Technology | Apple Uses AI to Summarize App Reviews

Apple’s iOS 18.4 introduces AI-generated summaries of app reviews, helping users process feedback more efficiently. The feature could impact how developers manage app store visibility and user engagement. (TechCrunch)

Retail & E-commerce | AI Helps Retailers Navigate Tariffs & Inflation

Retailers are using AI-driven pricing models and inventory optimization tools to counter rising costs from inflation and tariffs. These solutions help businesses maintain competitive pricing while improving supply chain efficiency. (Yahoo Lifestyle)

Media & Entertainment | Prime Video Tests AI-Powered Dubbing

Amazon’s Prime Video is piloting AI-generated dubbing for select movies and shows, aiming to reduce localization costs and expand content reach. The technology could reshape global content distribution while raising concerns about the impact on voice actors. (TechCrunch)

Featured Tool: Mercura.ai

AI-Powered Quoting for Wholesalers and Manufacturers

Mercura.ai is an AI-driven platform designed to automate the quoting process for wholesalers and manufacturers, particularly in the HVAC, electrical, and plumbing sectors. By leveraging artificial intelligence, Mercura.ai streamlines the generation of quotes from spec sheets and bills of materials (BOMs), enabling sales teams to respond to customer requests up to 80% faster and with greater accuracy. ​

Key Features:

• Automated BOQ and BOM Processing: Mercura.ai automatically matches bills of quantities and materials to the appropriate products in your inventory, reducing manual effort and minimizing errors. ​mercura.ai

• Enhanced Product Data Management: The platform enriches your product catalog with external data, transforming it into a fully categorized and attributed resource. This enhancement improves product data management and enables you to provide customers with more precise information. ​mercura.ai

• Comprehensive Sales Reporting: Gain full transparency into your sales activities and analyze performance by location and employee to replicate successful strategies. ​

For businesses aiming to streamline their quoting processes and enhance sales efficiency, Mercura.ai offers a robust, AI-powered solution that drives productivity and growth.

More Tools:

• Automaited – AI-powered document processing tool that automates data extraction and validation, seamlessly integrating processed data into ERP systems for efficient and secure workflow automation.

• Podcastle’s Magic Dust – AI-powered audio enhancer that transforms low-quality audio recordings into studio-level sound. It removes background noise, equalizes audio levels, and enhances voice clarity, making it ideal for podcasters and content creators.

• Extruct AI – AI-powered research engine that automates company discovery and data enrichment, providing real-time insights for sales, market research, and competitive analysis.

• Findaway Voices – A platform by Spotify for independent authors to distribute, monetize, and gain insights on their audiobooks across major platforms like Spotify, Audible, and Apple Books.

• CoreWeave Eyes $4B IPO – AI cloud service startup backed by Nvidia aims for major funding at a $32B valuation.

• Aescape Lands $83M – AI massage robotics company secures funding to scale operations and expand into new markets.

• Mews Raises $75M – Hospitality tech unicorn accelerates US and DACH growth with new funding.

• Freed Secures $30M – AI clinician assistant startup raises Series A funding to reduce medical documentation burdens.

• Viam Secures $30M in Series C Funding – Engineering platform for data, AI, and automation to expand global ambitions and further momentum in Europe.

• Flex Raises $25M ($250M Valuation) – Fintech platform for business owners secures funding to enhance financial management solutions.

• Auxia Secures $23.5M – Agentic Customer Journey Orchestration Platform to enhance customer engagement and drive revenue.

• Instant Raises $18M ($100M Valuation) – Automated marketing startup expands into the US.

• Ceramic.ai Raises $12M – AI infrastructure startup aims to accelerate enterprise model training.

• Knostic Nabs $11M – AI access control startup secures funding to enhance enterprise large language models.

_. Prompting Tip _.

Prompting Tip: Add a ‘Thinking Step’ for Better AI Responses

Want more insightful and well-reasoned AI responses? Try explicitly prompting the AI to think through a problem before generating the final answer. This technique encourages deeper analysis and improves accuracy.

How to Use It:

• Start with a clear instruction:
  "Think about the following question before providing an answer: [Your question here]."

• Use a dedicated 'thinking' section:
  "Provide your thinking process in the <thinking> section, then give your final answer."

By adding a structured “thinking step,” you guide AI toward more reliable and comprehensive responses. This simple tweak can make a significant difference, especially for complex queries.

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