The pace of change is accelerating even faster in AI for B2B. Even faster than just a few weeks ago!
- DeepSeek and Super Cheap AI for SaaS
- AI and The End of the Uncanny Valley
- VC is Back, But it’s All About Growth and AI
- Where is AI Budget Coming From, Exactly?
- The AI Agents Are Here. But How Many Agents Can We Pay For?
- Hype vs. Reality in the Enterprise
SaaStr’s AI Day 2025 brought together the top minds in the SaaS, AI and Cloud to dive deep into the intersection of AI and B2B. Featuring insights from Victor Rippabelli, CEO of Synthesia, and Tomas Tunguz of Theory Ventures, Jason Lemkin leads the discussion that covered everything from enterprise AI adoption to the evolution of video technology and the changing landscape of venture funding. Here’s what we learned.
AI in Enterprise Video: Synthesia’s Growth and $2.1B Valuation
Synthesia, the world’s largest AI video platform for enterprises, has been redefining how businesses create and distribute video content. Initially known for its AI-generated avatars, the company has evolved into a full-fledged AI video platform designed to make video creation as easy as making a PowerPoint.
Synthesia CEO Victor Rippabelli shared how it enables enterprises to communicate more effectively through AI-generated training materials, product marketing content, and customer support videos. By consolidating the video production workflow—spanning recording, editing, collaboration, and distribution—into a single platform, Synthesia eliminates traditional bottlenecks, reducing both cost and time to production.
Looking ahead, Synthesia plans to launch new AI video models that offer:
- Higher-fidelity avatars, reducing the ‘uncanny valley’ effect.
- Dynamic environments, allowing users to place avatars in various settings, such as offices, stores, or even tennis courts.
- Interactive video capabilities, turning videos into two-way communication experiences rather than static content.
These advancements not only improve engagement but also move AI-generated content deeper into product marketing and customer engagement workflows.
The AI Investment Boom: What’s Driving It?
The funding landscape for AI startups has been a mix of froth and caution. Tomas Tunguz highlighted that AI investment has skyrocketed, with venture firms deploying record amounts of capital into AI startups. However, while total dollars invested have surged, the number of deals has decreased, reflecting a consolidation of capital into fewer, more promising companies.
Notably, Synthesia recently raised funding at a $2.5 billion valuation, demonstrating strong investor confidence in AI-driven enterprise applications. According to Rippabelli, the differentiator in today’s market is not just new customer acquisition but revenue durability—investors are scrutinizing expansion and retention rates more than ever.
Remember when 3x, 3x, 2x, 2x, 2x was the gold standard for annual growth in SaaS companies?
That was cute.
— Eric Vishria (@ericvishria) January 31, 2025
The Future of AI in B2B: Agents, Automation, and Efficiency
A major theme of the discussion was the rise of AI agents and their role in enterprise applications. Companies are experimenting with AI-powered SDRs, customer support assistants, and internal workflow automation. However, the debate remains: are businesses ready to adopt dozens—or even hundreds—of AI agents, or will AI functionalities remain embedded within existing platforms?
Tunguz believes that while the number of software applications in enterprises is not increasing dramatically, AI is shifting the economics of software. Companies may consolidate applications while increasing spending on AI-driven tools that replace traditional labor-intensive tasks.
Rippabelli echoed this sentiment, noting that Synthesia’s success comes from augmenting human work rather than fully automating it. AI-driven productivity gains are undeniable, but fully autonomous AI workflows still require careful implementation to deliver lasting business value.
Fundraising in 2025: What’s Changed?
For AI startups, raising capital remains a tale of two worlds:
- For early-stage companies, the right story and vision can still command high valuations.
- For growth-stage companies, the emphasis is on proven revenue durability and enterprise adoption.
According to Rippabelli, while AI hype still plays a role, investors are increasingly focusing on fundamental SaaS metrics—renewals, net revenue retention (NRR), and contract expansion—rather than just top-line growth.
Tomasz notes that even Triple Triple Double Double growth may not be enough today, in many cases. The bar has gone up due to AI and AI-levels of growth.
Key Takeaways: Where AI in B2B is Headed
- AI Video is the Future of Communication: Enterprises are moving away from text-heavy content in favor of AI-generated video and interactive experiences.
- AI Investment is Strong, but Selective: The market is hot, but capital is flowing into companies with proven staying power.
- AI Agents Need a Business Model: Enterprises may not want to manage hundreds of individual AI agents, favoring integrated solutions instead.
- AI is Replacing Services, Not Just Software: The budget for AI-driven software is often coming from outsourcing and consulting spend rather than traditional software cuts.
- AI Doesn’t Eliminate Humans—Yet: The biggest impact of AI today is augmenting human work, not replacing entire teams.
Final Thoughts
As AI continues to evolve, businesses must navigate an ever-changing landscape of tools, automation, and investment trends. While some trends may be overhyped, the undeniable fact remains: AI is fundamentally changing how enterprises operate. The key to success? Focus on solving real business problems, ensuring AI investments lead to meaningful outcomes rather than just novelty adoption.
The AI revolution isn’t slowing down—and for SaaS founders, the opportunity is bigger than ever.
