The SaaS Playbook is Broken (And Every Procurement Leader Knows It)

Why traditional vendor evaluation fails for AI-native solutions—and what's replacing it

At the DPW NYC event last month, I had the same conversation with multiple procurement leaders:

"Evaluating AI vendors feels completely different from anything we've done before."

They're absolutely right. And if you're still using the same playbook you developed for traditional SaaS, you're setting yourself up to miss the biggest shift in enterprise technology since the cloud.

The Problem: SaaS Was Built for Humans

Let's be honest about what traditional SaaS really is:

• Dashboards that require human navigation

• Endless menus that demand human decision-making

• Usage-based pricing tied to human activity

• Admin overhead that scales with human complexity

This worked fine when software was a tool that amplified human work. But AI-native solutions operate on a fundamentally different principle.

The Shift: GenAI Wants APIs, Not UIs

Here's what early adopters figured out first: GenAI doesn't want a user interface. It wants an API and results.

Traditional software waits for human input. AI-native software acts autonomously.

Traditional software shows you data. AI-native software uses data to deliver outcomes.

Traditional software charges for access. AI-native software delivers value.

What This Means for Procurement

The procurement teams that understand this shift are already changing how they evaluate vendors. Instead of asking:

❌ "What features does your platform have?" ❌ "How many seats do we need?" ❌ "What's your usage-based pricing model?"

They're asking:

✅ "What specific outcomes will you deliver?" ✅ "How do you measure and guarantee results?" ✅ "What happens when your AI performs the work instead of our team?"

The New Evaluation Framework

Traditional SaaS Evaluation:

• Feature comparison matrices

• User interface walkthroughs

• Seat-based cost modelling

• Implementation timelines

• Training requirements

AI-Native Evaluation:

• Outcome delivery mechanisms

• Performance guarantees and SLAs

• Results-based pricing models

• Integration and automation capabilities

• Measurement and optimisation frameworks

Why This Matters Right Now

This isn't just a technology upgrade. It's the beginning of the end of traditional software.

Software is vanishing. Only outcomes remain.

No more steps, no more dashboards. Just results delivered when and where they're needed—by AI.

The procurement teams that adapt their evaluation criteria now will have a massive advantage. Those that don't will find themselves blindsided by vendors who've already made the switch.

The Questions You Should Be Asking

As you evaluate AI-native solutions, here are the critical questions that matter:

1. Outcome Definition

• "What specific, measurable outcomes does this solution deliver?"

• "How do you define success, and how do you measure it?"

2. Autonomous Operation

• "What work does your AI do without human intervention?"

• "How does the system improve its performance over time?"

3. Integration Reality

• "How does this connect to our existing systems and workflows?"

• "What data does your AI need to deliver optimal results?"

4. Risk and Control

• "How do we maintain oversight when the AI is doing the work?"

• "What happens when the AI makes decisions we disagree with?"

5. Value Realisation

• "How quickly do we see measurable results?"

• "What's the path from pilot to full-scale value delivery?"

The Bottom Line

The question isn't whether this shift is happening. The question is: Is your procurement strategy ready for it?

Traditional vendor evaluation processes miss the point when software does the work instead of humans. The organisations that adapt their procurement approach will capture the value. Those that don't will keep buying tools when they should be buying outcomes.

What's your experience been with AI vendor evaluations? What challenges are you seeing that traditional procurement processes can't address?

This is episode 1 of "The Procurement Wake-Up Call"—a series breaking down what procurement leaders need to know about the AI-native revolution. Next episode: What AI-native actually means (and why adding a chatbot to your SaaS isn't enough).

#Procurement #AITransformation #VendorManagement #SaaS #EnterpriseAI #ProcurementLeadership #AIStrategy #SoftwareBuying