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Back to Christina Cacioppo - Building an Enduring Software Company in the Age of AI, with Christina Cacioppo.

Why Is Vanta Paying for Customers' AI Tokens?

Christina Cacioppo says Vanta is eating the AI token cost and taking a lower margin. Customers notice a markup and compare it with the model itself, so marking tokens up is a comparison the product loses. About 25 percent of customers are already in the flow where an agent goes off and does the work, and she wants that at 75 percent. Retention and the experience come first. Price can wait until the usage is real.

The end state she wants is outcome pricing, getting paid for the result. Everyone she talks to wants that, and she likes the alignment from her years teaching microeconomics. Patrick O'Shaughnessy separates a closed support ticket, an output, from the outcome the customer actually wanted. The hard part is agreeing on a unit of work. A drafted document, a closed alert, or an offboarded account each sounds neat, and then there are dozens more. Users will not price every action. Charging the tokens puts the product against the model provider, and credits that hide a token exchange rate do not fool users either.

Transcript

Christina Cacioppo - Building an Enduring Software Company in the Age of AI ·

Invest Like the Best with Patrick O'Shaughnessy

More from this episode

  1. What Does Vanta Do for Companies?Christina Cacioppo started Vanta about eight years ago to help companies build and earn trust.
  2. Why Is an 80% Growth Software Business Worth Less Than a Faster One?Christina Cacioppo says a business growing 80 percent with 80 percent margins returns more cash over a long stretch than one growing 160 percent with 30…
  3. How Do You Get a Team to Adopt AI?Christina Cacioppo says the hard part of adopting AI that has paid off is simply getting people to use it, with personal use coming first.
  4. Why Is Pay for Vanta's Top People Up 10x?Christina Cacioppo says total pay for the top person at Vanta is probably ten times what that seat paid five years ago, and she thinks it should be higher.
  5. Are French Software Companies Using Chinese Models?Christina Cacioppo learned that a lot of the French software companies in Paris are using Chinese models predominantly.
  6. How Do AI Models Change Security Bug Priority?Christina Cacioppo says AI models are far more persistent than people, so issues that look low severity on their own get chained into a real finding, and…
  7. Why Does AI Help Security Chiefs Get Budget?Christina Cacioppo says security chiefs are much more likely to get budget for an enterprise risk overhaul today because the request is attached to AI.
  8. How Did Vanta Lose Its Famous Billboard?Christina Cacioppo says Vanta lost the billboard spot the company was known for because the deal was a placement order, not a multi-year contract.

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