Who:
- Jason Lemkin, SaaStr founder and SaaS oracle, calling out AI feature theater
What Happened:
- 70% of AI features launched in 2025 showed zero measurable revenue impact per SaaStr's audit
- Only 10% drove actual ACV growth, retention bumps, or expansion revenue
- Valid AI features must enable 20-50% price increases or 20%+ retention improvements
Why It Matters:
- Forces CROs to kill 'AI sprinkles' that don't materially impact pipeline or NRR
- Resets VC expectations: demo-worthy AI ≠ revenue-worthy AI
- Exposes copilot ghost towns where usage doesn't translate to customer P&L impact
ARM Impact:
- Tab Hopper (Stage 1 (Tab Hopper)): Vanity AI metrics won't save leaky funnel ops
- SaaS Hoarder (Stage 2 (SaaS Hoarder)): Feature bloat gets exposed without revenue linkage
- AI Sprinkler (Stage 3 (AI Sprinkler)): Teams must pivot to AI features that directly enable ARM pricing
What to Watch:
- Q2 earnings calls where public SaaS companies walk back AI hype
- Which vendors sunset 'zombie AI' features by EOY 2026
- Emergence of AI revenue attribution tools beyond usage dashboards