The B2B Gen AI shortlist

In today’s fast-paced business world, the generative AI market is exploding. Yet, B2B buyers are surprisingly narrowing their focus, often considering only the top two suppliers on their shortlists before making a purchase. This isn’t just a fleeting trend; it’s a significant shift that reshapes how Gen AI providers compete.

The Ultra-Shortlist’s Ascent to Power

Reports from the LinkedIn B2B Institute confirm this trend: B2B buyers typically consider no more than three vendors for generative AI purchases. TrustRadius data further supports this, showing an average of just 2.6 products on a shortlist, with only 14% of buyers including four or more. Buyers conduct their research, narrow down options, and often make a final decision before even contacting a vendor. In fact, the first seller they contact wins the contract 84% of the time.

Quicker Choices with Less Information Drive Selection

Three powerful factors drive this accelerated selection process:

Cycles propelled by speed: Pressure for generative AI to deliver rapid return on investment (ROI) shortens purchasing cycles. G2 found that 83% of businesses achieve good ROI within three months of using AI technologies.
Overwhelmed by data: The sheer volume of Gen AI marketing is a maze. A significant 68% of B2B customers feel all AI vendors sound the same and only trust a small number of well-known brands.
Risk-averse companies: Businesses are cautious, seeking assurances of security, scalability, and alignment before investing in AI. Vendors they haven’t thoroughly vetted or who don’t fit a specific niche quickly face elimination.

Shortlists Reduce the Funnel and Raise the Stakes

Every vendor excluded from the shortlist accelerates the decision-making process and gives remaining sellers more time to win over buyers. Forrester data shows that adding just two vendors can lengthen the process by about two months and necessitates an increase in team size. Risk-averse buyers tend to stick to well-established brands. A striking 82% of consumers already have a preferred product in mind before they even begin researching online. This means if you don’t place in the top two, the funnel will likely move on without you.

What Victors Win: Standing Out from the Crowd

Winning vendors truly stand out. Consider these differentiators:

Without the use of jargon: Generic slogans like “AI-powered insights” no longer resonate. The 68% of buyers who feel all vendors sound alike demand specificity, clear ROI measures, defined responsibilities, and tangible results.
Relevance and positioning: Successful AI experts focus on a specific niche. For example, a winning message might be: “We automated forecasting in logistics firms by 43% in 90 days.”
Initial consideration: Data reveals that buyers engage with vendors 70% of the way through their journey, and customers typically stick with the first vendor they contact. Brands need to engage people earlier through thought leadership, personalized content, and peer insights.
Seamless vendor experience: Winning suppliers immediately demonstrate trustworthiness by streamlining demonstrations and onboarding. AI RFP systems like Twilio’s “RFP Genie,” which automate the proposal response process, allow users to focus more on value than procedure.

Business Strategy Guide for Suppliers

To thrive in this environment, Gen AI providers should:

Refine the message: Use data-rich framing, such as: “We reduced document review time by 70% in six weeks.”
Quickly get people’s attention: Plant seeds along the buyer’s journey with informative content and influencer campaigns.
Present evidence of differential ROI: Methodically offer scalable value, including governance principles, logic mapping, and ROI standards.
Gain confidence by being open and honest: Address integration, data privacy, and intellectual property problems early on, as buyers expect transparency, not legal jargon.

The Gen AI market is incredibly congested. Customers are also playing it safe by narrowing their shortlists to just two reliable vendors. To succeed in this fast-paced, risk-averse setting, you must be both credible and memorable. Be the brand people think of and trust even before the shortlist begins.

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