Artificial intelligence (AI) is disrupting the way software is bought and sold, according to the 2024 Buyer Behaviour Report titled “Proving Value in the Age of AI,” from G2, the world’s largest and most trusted software marketplace. When it comes to how ROI for AI software investments is being measured, employee productivity was cited as the #1 metric by nearly half the respondents in the survey. Of buyers who said their organization had purchased an AI platform within the last 3 months, 83% reported their organization has already seen a positive ROI from that purchase.
“AI is changing – and will revolutionize – the way software is researched, purchased, and sold,” said Godard Abel, Co-founder and CEO, G2. “We’ve already observed the shift of B2B software buying to mirror consumer-like shopping. Now, as we’ve entered an age of AI, we’re seeing an acceleration in software innovation and the shift to digital buying. Buyers want to find the right tools for their business and see value from them faster than ever. In this new environment, vendors have an opportunity to meet rising expectations – moving at the speed of AI to deliver new innovations and immediate ROI for customers.”
The 2024 Buyer Behaviour Report revealed that 65% of software buyers globally plan to increase their investment in AI software over the next year, with this percentage growing to 81% for India-based buyers – underscoring the growing influence of AI on purchasing decisions and the evolving dynamics between buyers and vendors.
Key findings of the Report :
- AI fuels B2B spending: 52% of buyers globally and 78% of India-buyers buyers anticipate increased technology and software spending in the coming year. AI is a clear driver of this spend as 56% of all respondents and 75% of India-based respondents reported their organization had purchased an AI platform in the last three months when they were surveyed in March 2024.
- Software vendors face challenges: Despite increased spending, vendors face a tougher sales environment. Shortlists are shrinking, buying cycles are longer, and ROI expectations are higher. Buyers are more discerning and prioritize quick wins and demonstrable value.
- Elevated expectations: Buyers demand faster ROI, with 57% of all buyers and 75% of India-based buyers expecting positive returns on their software purchases within three months.
- AI is reshaping the buying process: AI is influencing how buyers spend time in the purchase process. Those who consider themselves ‘AI Power-Users’ focus less on research and more on discovery and evaluation. Additionally, buyers increasingly prefer self-service throughout the buying journey, as 69% say they usually engage a salesperson at a software company only when they have made a purchasing decision. This percentage rises for India-based respondents to 80%.
- Trust and transparency reign supreme: Peer reviews and independent forums are the most trusted information sources. Buyers value transparency and authenticity from vendors.
- Security is paramount: While security concerns are high, a gap exists between intent and action. 48% of all buyers and 64% of those based in India say they have purchased software without IT or InfoSec vetting.
- Service providers play a key role: Service providers are usually part of the decision when deciding to purchase new software according to 69% of respondents globally and 90% of those based in India. They’re also being considered earlier in the buying process with research as the most common stage when this happens. This trend highlights the need for seamless integration and implementation support. Buyers value trust, reputation, and certifications when choosing a service provider, underscoring the point that software vendors with strong partner ecosystems have an advantage.
G2 released these findings as part of its annual Buyer Behaviour Report, based on a survey of over 1,900 B2B software buyers across the globe, on the sidelines of G2 Live 3.0 conference and awards, held in Bangalore. BrowserStack and Freshworks topped the rankings, according to G2’s methodology based on Satisfaction and Market Presence scores.
