A WINNING COMBINATION

New-age companies are embracing generative Al to find an edge in their businesses.

- By Rukmini Rao

That’s how many describe one of the big disruptions in the technology space. For the layperson, this software from OpenAI revealed the power and potential of generative AI software. And while DeepSeek is likely to democratise GenAI, the tech world now talks about a time before ChatGPT and after ChatGPT—much like the way history looks at Before the Common Era (BCE) and Common Era (CE) as reference points.

With the advent of AI and GenAI, there developed a school of thought that believed these technologies would kill businesses in the Software-as-a-Service (SaaS) space. However, around two years since the ChatGPT moment, new-age SaaS companies in India have not just survived, but have taken the lead in adopting AI and GenAI.

And for good reason. Investors and founders agree that AI adds value to their companies. A recent report by AI-focussed venture capital firm SenseAI Ventures points out that enterprise SaaS companies dominated the AI funding space with over 21% of the total investments in 2024, with Al applications & tooling making up for more than 90% of Indian Al funding. The report predicts that in the coming months, AI-first SaaS firms will see their business models evolve from seat-based pricing to outcome-based pricing. That said, firms that have embraced AI/GenAI have already started seeing a considerable difference.