The traditional sales model, where relationship-building is key, is being challenged in the AI era. Microsoft’s recent layoffs of generalist sales representatives signify a shift towards sales professionals who possess in-depth product knowledge. Jason Lemkin predicts a significant replacement of one-to-two call sales reps by AI technologies. He emphasizes that in today's market, companies prefer solution engineers who are knowledgeable about the product rather than traditional relationship-focused salespeople. This shift in expectations highlights the need for sales professionals to adapt to AI advancements in customer interactions.
My rough sense is 30% to 40% of one-to-two call sales reps are going to be replaced by AI. Microsoft is doing what other companies are only thinking about.
We're not going to have a guy that doesn't know our product in the age of AI show up to big deals. I would rather have a solution engineer that knows this cold.
You better be worried if you're a generalist sales guy that thinks being a relationship guy wins today. That's Microsoft's point.
AI has raised the bar for customer expectations. Companies would want to replace folks that don't know my product with folks that do.
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