Post by Pierre Martini

The 'Rule of 40' for evaluating SaaS vendors has rendered immense service to our industry. But at #ISAI, we're no longer sure it's telling the truth about profitable European SaaS. Right now, the debate is dominated by one fear: to which extent will AI inference costs impact SaaS gross margins? We think that's half the story as AI also has the potential to reshape the rest of the P&L. So the real question isn't “does my company pass the Rule of 40?” but how will my P&L and growth be affected by IA over the coming 24-36 months. At ISAI, we are currently testing a framework we call AICE (AI Cost & Efficiency) to cover those topics on our new SaaS investment opportunities. Would genuinely welcome your feedback. Full op-ed linked in the comments below. Raphael de Talhouet Stéphane Treppoz Jean-David Chamboredon Arnaud de Scorbiac Francois Collet Jean-Patrice Anciaux Nicolas MARTINEAU Christophe Poupinel Aude Lapillonne Pierre Dumas Florian PIERRE Jacques Pommeraud Emmanuel Arnaud Charles-Edouard Girard David Buhan Jean-Philippe Couturier François Carlot Matthieu Rosset Alexandre Odin Jocelyn DENIS Joy Sioufi Nicolas Segretain Thibaut De Smedt Nicolas von Bülow Georges Lotigier Sara Rachele Napolitano Arnaud Petit