At Sierra, we help companies build customer-facing AI agents, which represent their brand and enhance customer experience.

Every company's main digital interface will be an AI agent, replacing traditional websites and apps as the primary customer interaction point.

The foundation model market will likely consolidate, similar to the cloud infrastructure market, resulting in a few dominant players with low margins but high scale.

The applied AI market will manifest as agents tailored for specific industries, such as legal or customer service, representing a new form of software as a service.

Outcomes-based pricing at Sierra means we charge a pre-negotiated rate when our AI agent autonomously resolves an issue, aligning our business model with our customers' needs.

The transition from traditional software sales to outcomes-based models is challenging for incumbents, but startups can leverage this shift to their advantage.

Startups have a unique advantage over incumbents by being unencumbered by outdated business models, allowing them to innovate and adapt more quickly, especially as AI drives a shift from subscription-based pricing to outcomes-based models, making it harder for established companies to adapt compared to startups.

The virtualization of infrastructure and advancements in software development have significantly reduced the overhead for starting a company today.

Many startups waste resources on non-core activities, which detracts from their ability to focus on selling products and differentiating themselves in the market.

Successful companies in competitive markets, like home security, can leverage AI to improve productivity and reduce operational costs, allowing for reinvestment in growth.

The key to selling effectively is understanding your customer's language and needs, and reflecting the value of your technology in solving their problems.

Companies that can quickly provide value around core workflows will have a competitive advantage in the AI space, especially in vertical markets.

In competitive markets, CEOs prioritize growth over cost savings, and successful AI implementations should focus on driving measurable topline outcomes.

Understanding the decision-making process and budgeting cycles of your customers is crucial for successfully selling enterprise software solutions.