Overview

Challenges

A recent TSIA quick poll revealed that while nearly half of companies are already monetizing their AI, this revenue potential is closely tied to a mature XaaS (Everything-as-a-Service) portfolio and the ability to gather customer telemetry. This report offers insight into how companies are distributed across the AI adoption landscape, highlighting those that are not yet monetizing due to a lack of significant XaaS offers and connected customer bases.

Summary

The poll insight reveals a growing trend among companies toward monetizing AI capabilities, with many adopting subscription models like SaaS and managed services. Although almost half of the organizations report monetizing their AI, there remains a significant portion that has not, highlighting an opportunity for improved governance and strategy. Embracing these models is essential for enhancing customer experiences and ensuring competitive positioning in the industry.

Read the full report on the TSIA Portal

Included in the full report

Monetization of AI Capabilities:

46% of companies currently monetize their AI, while 49% do not, indicating a significant opportunity for growth.

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SaaS and Managed Services Dominance:

88% of surveyed companies have subscription-based or managed service offerings in the market, showcasing industry-wide adoption.

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Revenue Generation Variance:

A noteworthy 35% report over half of their revenue coming from SaaS or managed services, while 40% earn less than 10%.

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Telemetry Reporting Gaps:

Many customers (34%) purchasing technology report less than 10% telemetry back to companies, complicating scalable AI implementation.

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Intense Competition Presence:

95% of organizations confirm competing with others offering similar services, reinforcing the importance of monetizing AI for competitive advantage.

Read the full report on the TSIA Portal

Publication date:

February 28, 2024

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