SaaStr Sees Agents Picking Software Vendors

SaaStr, a well-known publication, reported that agents are now making vendor decisions, similar to how developers did in the past. This change may significantly impact the marketing strategies of companies, as agents become the new decision-makers.

In 2021, Jeff Lawson wrote 'Ask Your Developer', emphasizing the importance of developers in B2B software purchasing decisions. Now, SaaStr notes that the same phenomenon is happening again, with agents taking on a similar role. At SaaStr, agents are used in production, and vendor decisions often start with a question to an agent.

SaaStr's experience with agents has shown that they can pick vendors, kill vendors, consolidate vendors, and even decide not to buy anything at all. The company's AI VP Revenue, 10K, now has the final say in trying out new AI agents, especially in the go-to-market (GTM) space. SaaStr reported that its Connect Agent picked Render as the top choice for a new platform, and the agent's decision was trusted by the team, even though some members had not previously considered Render.

The use of agents in vendor decisions is not limited to SaaStr. Vercel, a developer infrastructure company, has seen agents go from under 3% of deployments to over half in about a year. This shift has significant implications for companies, as agents can quickly recommend or reject vendors. Dev Ittycheria noted that being missing from an AI-generated answer is like being invisible on Google, highlighting the importance of being included in an agent's shortlist.

Agents working inside a company have a different context than humans asking ChatGPT or Claude, according to SaaStr. They have access to the company's data, integrations, volumes, and costs, allowing them to make more informed decisions. This is different from the 'GEO' and 'AEO' categories, which focus on ranking when a human asks for recommendations. SaaStr's agent, 10K, has made decisions such as shortlisting a vendor, running pricing, and dropping it in 12 hours, demonstrating the speed and autonomy of agent-led decision-making.

SaaStr has started calling this phenomenon 'Agent-Led Growth' (ALG), highlighting the importance of agents in driving growth and making vendor decisions. As agents become more prevalent, companies will need to adapt their marketing strategies to effectively reach and influence these new decision-makers. SaaStr reported that agents can also churn vendors quickly, with 10K moving on to the next name on its list in under 12 hours if a vendor's pricing is not satisfactory.

The implications of ALG are significant, and companies will need to consider how to effectively market to agents and influence their decisions. SaaStr's experience has shown that agents can be powerful decision-makers, and companies that fail to adapt to this new reality may be left behind. As the use of agents continues to grow, it will be important for companies to stay ahead of the curve and develop effective strategies for reaching and influencing these new decision-makers.