Memo
Context
AI agents such as Human-Enhanced Agents (HEAs) shift software from navigation to conversation. This promises lower friction, personalization, and higher conversion — but it also strains legacy SaaS models and commoditizes GenAI infrastructure.
Legacy Players (CX, IT/HR, Enterprise)
- Today’s model: seat-based SaaS, support packages, enterprise contracts.
- Challenge: a single capable agent reduces the importance of seat count; pricing “per bot” doesn’t map cleanly to ARR; marginal cost per interaction falls, eroding “more seats → more revenue.”
- Implication: cannibalization risk — agents can shrink core license revenue if adopted aggressively.
- Typical responses: bundle AI into existing plans; position AI as assistive (copilots) vs replacement; monetize governance/compliance add-ons.
New GenAI Players (APIs & Studios)
- Today’s model: API consumption (tokens/requests) or per-workspace subscriptions.
- Challenge: revenue tied to infrastructure cost (compute) vs business value; open source pressures pricing; hard to capture last-mile value (conversion, CX, brand lift).
- Implication: risk of becoming a commodity utility unless moving “up the stack.”
- Typical responses: launch Custom GPTs/Copilot platforms; build ecosystems/marketplaces; add enterprise layers (SLA, hosting, compliance).
Where HEA Fits
- Positioning: website-native, per-HEA packaging, compliance-led.
- Differentiator: revenue ties to outcomes (conversions, engagement, support savings) rather than seats or tokens.
- Model innovation: per-HEA/per-site feels natural to SMBs & agencies; scales with deployed agents, not inputs.
- Challenges: market education; incumbents may bundle agents “for free”; balancing simplicity vs value capture granularity.
Strategic Tensions
- Cannibalization vs Innovation (legacy seat ARR at risk)
- Infrastructure vs Application Value (compute vs outcomes)
- Commoditization vs Differentiation (who owns the customer interface?)
Takeaway
Agents force a rethink of where value accrues. Legacy vendors risk ARR erosion; GenAI infra risks commoditization; agent-native entrants like HEA-World can anchor pricing in outcomes and compliance — provided the story is simple and the ecosystem broadens adoption.
Porter’s 5 Forces — HEA-World
1) Threat of New Entrants — Medium–High
- Foundation models + OSS lower technical barriers.
- Differentiation shifts to last-mile packaging, UX, and compliance.
- HEA angle: per-HEA productization, EU-first compliance, fast go-live.
2) Bargaining Power of Suppliers — Medium
- Model vendors & infra (LLMs, hosting, auth) can affect gross margin.
- Competition (OSS/alt LLMs) tempers pricing power.
- HEA angle: multi-model strategy + caching + retrieval to manage COGS.
3) Bargaining Power of Buyers — High (SMB) / Medium (Enterprise)
- Many alternatives (CX bots, copilot suites, Custom GPTs).
- Buyers compare against “bundled for free” offers from incumbents.
- HEA angle: show measurable funnel lift + transparent pricing.
4) Threat of Substitutes — High
- Traditional chatbots, FAQ search, human live chat, copilot widgets.
- HEA angle: website-native concierge + brand alignment + analytics.
5) Rivalry Among Existing Competitors — High
- CX suites (Zendesk/Intercom), IVA platforms, studio tools, Custom GPTs.
- Price pressure from usage-based APIs and bundles.
- HEA angle: own the “website agent” category; per-HEA simplicity; agency channel.
Summary: Win by owning the on-site agent niche, compressing time-to-value, and tying price to conversion & compliance rather than seats/tokens.
Matrix
2×2: Legacy vs New × Seat/API vs Agent/Outcome
Edit the points array below to adjust positions or add players.
