How will Agentic architecture change how software is sold?

Software pricing models are being revolutionized by AI. Kevan Yalowitz, Global Software and Platform Lead at Accenture, explains how agentic architecture is shifting software from seat-based pricing to value and outcome-based models. He details why this transformation represents a revolutionary rather than evolutionary change, creating a disconnect between what software companies currently offer and what IT consumers increasingly demand. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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  From advertising to software as a service to data, across all of our programs and clients, we've seen a 55% to 65% open rate.

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  Welcome to the Martech Podcast, a member of the I Hear Everything Podcast Network. In this podcast, you'll hear the stories of world-class marketers that use technology to drive business results and achieve career success. Here's the host of the Martech Podcast, Benjamin Shapiro.

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  I'm Benjamin Shapiro and joining me today is Kevin Yalowicz, the Global Software and Platform Lead at Accenture, who is going to explain how AI is reshaping the advertising landscape. Kevin, I want to move on into our lightning round where I'm going to ask you Martech-related questions related to AI's impact in advertising. Are you ready?

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  I am very much ready.

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  All right, here we go. How will agentic architecture change how software is sold?

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  It's going to flip it on its head. Software today is sold by, largely speaking, in seats. We pay for a software seat because software is a tool that allows a human to do something. Agentic AI is going to shift this because agents are going to do more of the work and it's going to shift the pricing model, in most cases, to be focused on value and outcomes. And that's a major shift for most software companies.

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  I think that the shift has been coming for a while, and I think that there was this notion of sort of the legacy long-term subscription. We're going to lock you in for three years and charge high rates to, okay, seats-based, and then we got to usage-based, and then even hybrid, where you pay a small fee and then a usage fee. Is this just the natural iteration of what we've been seeing, or is Agentic AI actually causing the change in business models?

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  I think Agentic AI is a major accelerant to it. It would be hard to say that it's evolutionary, not revolutionary.

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  Just like everything else.

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  It changes the function of what software does and how we use it, which necessitates the need for a different business model. And that's not a business model that most software companies are ready to do today, but it's a model that most end consumers of it want immediately.

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  Just like everything else, Agentic AI is not necessarily changing how things are done, it's just changing the pace of how things are done.

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  Yes.

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  All right, and that wraps up this episode of the Martech Podcast. Thanks for listening to my conversation with Kevin Yalowicz, the Senior Managing Director of Global Software and Platforms at Accenture. If you'd like to get in touch with Kevin, you can find a link to his LinkedIn profile in our show notes or on martechpod.com, or you can visit his company's website, which is Accenture.com. If you haven't subscribed yet and you want a daily stream of marketing and technology knowledge in your podcast feed, hit the subscribe button in your podcast app or find us on YouTube, and we'll be back in your feed every week. All right, that's it for today, but until next time, my advice is to just focus on keeping your customers happy.