Source: TechCrunch
AI adoption is fragmenting purchasing decisions across organizations—no longer centralized with procurement. Startups can't rely on traditional multi-year contracts or account expansion. This undermines the ARR metrics that venture investors use to value early-stage companies, forcing founders to rebuild sales models around shorter deal cycles and higher churn as capital tightens. Winners will be companies selling directly into emergent AI workflows like prompt engineering platforms or model fine-tuning, not those selling traditional enterprise infrastructure built for centralized buying.