AI software spending is on the rise as companies continue to add tools such as Lumen5 and Murf to their SaaS stacks. As such, AI tools now account for 1% of total software spending within the average business – a 500% increase in three months.
New data from SaaS purchasing platform, Vertice, shows that an increasing number of businesses are now subscribing to artificial intelligence (AI) software, and that these tools now account for 1% of total SaaS spend within the average organization, an increase of 500% in just three months.
Learn more here: https://www.vertice.one/inside-saas/ai-software-spend
Vertice specifically found that the number of companies using AI software more than doubled in this time frame, with only 10% of companies having subscribed to an AI tool at the start of the year, compared to 33% as of April 2023.
While it’s not yet clear how these standalone AI tools will fare in the coming months and years, as companies continue to scrutinize their budgets and as enterprises such as Microsoft and Salesforce develop and release new AI capabilities, this data does indicate that, for now, a growing number of organizations see these tools as a valuable addition to their existing software portfolios.
For more information on how SaaS prices are increasing in general, the full SaaS inflation index can be found here: https://www.vertice.one/inside-saas/reports/saas-inflation-index-2022
The number of tools being used by the average company is also increasing by 18% each year, according to additional data from Vertice. This percentage could increase even further as a result of this now booming generative AI market, as companies get drawn in by new must-have tools.
Any additional tool that is purchased is, however, a tool that should be monitored and negotiated upon renewal, and with software prices rising at a rate that is four times higher than market inflation alone can account for, it’s imperative that companies have complete visibility of the tools in use across the organization, as well as the the cost of each tool, the utilization rates, and the renewal deadlines.
Losing sight of these applications can leave businesses vulnerable to unwanted auto-renewals and costly price uplifts. Especially given that the average company now uses 110 software tools, according to data from Statista.
It's also important that companies are securing the best possible prices for these tools. Further data from Vertice shows that 90% of companies are paying an average of 26% more for their software than they could be, often significantly higher.
Learn more about how Vertice can provide maximum cost and time-savings when purchasing SaaS at https://www.vertice.one/ .
