In the AI revolution sweeping B2B SaaS, there's a critical distinction that most operators miss. I'm seeing two fundamentally different types of AI products emerge, and understanding this difference isn't just academic—it's essential for anyone building, selling, or implementing AI solutions.
The first type improves existing software or processes. These are the "AI-powered" versions of tools we already know and use.
The second type does something completely different—creating entirely new capabilities that were previously impossible.
As someone who's watched countless B2B companies navigate technology adoption, I can tell you that while the first type is easier to sell, the second type is where the real opportunity lies.
Selling AI-powered improvements is straightforward. You have a clear benchmark and a simple value proposition: we do what you're already doing, just faster, better, and cheaper.
The buyer doesn't need to rethink their workflow—they just slot in something that clearly works better. These products satisfy immediate needs, show quick ROI, and fit neatly into existing budgets and purchasing processes.
For revenue teams under pressure to hit quarterly targets, these solutions are attractive because they're easy to understand and adopt.
But here's what I've learned from working with growing B2B companies: the easy path rarely leads to category-defining outcomes.
The products that excite me most are building entirely new capabilities. They don't fit into existing frameworks or replace existing tools—they expand what's possible.
These solutions require buyers to add something fundamentally new to their operations.
This is exactly the challenge we face at BackEngine. We're not just improving existing customer feedback tools—we're creating a completely new way for B2B companies to understand and act on customer communications at scale.
Instead of replacing spreadsheets or CRM notes, we're enabling teams to systematically capture and act on customer intelligence AI that was previously impossible to gather.
Unlike incremental improvements, transformative AI often requires an enterprise LLM platform designed with customer context and security in mind. It's not just about productivity—it's about fundamentally changing how sales, success, and revenue teams operate.
For buyers, adopting entirely new paradigms means deeper evaluations, longer sales cycles, and more internal championing. There's no neat budget category, no clear owner, and no obvious ROI comparison.
When we talk to revenue leaders about BackEngine, we're not asking them to switch from Tool A to Tool B. We're asking them to fundamentally change how their organization listens to and acts on customer feedback.
That requires a bigger leap of faith and more organizational buy-in.
But history shows us that the real winners—Netflix, Amazon, Salesforce—didn't just improve something incrementally. They reshaped entire industries by redefining what was possible.
Netflix didn't build a better video rental store; they reimagined how we consume entertainment.
Amazon didn't create a better bookstore; they transformed commerce itself.
Salesforce didn't just improve CRM; they pioneered cloud-based enterprise applications.
Each faced skepticism and slower initial adoption before changing their industries forever.
The most valuable AI products will fundamentally transform how we work and solve problems.
While incremental improvements deliver near-term wins, the greatest value creation comes from expanding the boundaries of what's possible.
For B2B companies serious about competitive advantage, this means being willing to evaluate solutions that don't fit existing categories. It means looking beyond the comfort of "faster, better, cheaper" to ask: "What could we accomplish if we approached this problem completely differently?"
The challenge for operators is developing the vision and courage to embrace new paradigms. It requires patience through longer evaluation cycles and confidence in transformative potential.
For those willing to navigate these challenges, the rewards will be extraordinary. Because while everyone else is optimizing existing processes, you'll be building entirely new capabilities that competitors can't easily replicate.
The future belongs to companies that don't just do things better—they do things differently.
