Published: 14 March 2024
With SaaS vendors introducing generative AI functionality into their existing solutions, renewal costs will increase. Sourcing, procurement and vendor management leaders must seek and gain transparency, determine impact and map out their negotiation strategy when it comes to GenAI.
Major enterprise SaaS vendors such as Microsoft and Salesforce have gone to market with their generative AI (GenAI) functionalities, with many vendors expected to follow suit, all of which will result in increased costs at contract renewal.
GenAI is not only changing SaaS functionality, but also further complicating vendor packaging, pricing and renewals. Sourcing, procurement and vendor management (SPVM) leaders who are not informed will face unexpected surprises at renewal, leaving little time to react and no option but to accept what terms the vendor positions.
GenAI elevates organizational risk in terms of how vendors are using data to train datasets
Clients can log in to view the entire document.
Analysts:
Gartner research, which includes in-depth proprietary studies, peer and industry best practices, trend analysis and quantitative modeling, enables us to offer innovative approaches that can help you drive stronger, more sustainable business performance.
Our independence as a research firm enables our experts to provide unbiased advice you can trust.
Not only is Gartner research unbiased, it also contains key take-aways and recommendations for impactful next steps.
Our research practices and procedures distill large volumes of data into clear, precise recommendations.
We provide actionable, objective insight to help organizations make smarter, faster decisions to stay ahead of disruption and accelerate growth.
We offer one-on-one guidance tailored to your mission-critical priorities.
We work with you to select the best-fit providers and tools, so you avoid the costly repercussions of a poor decision.
Connect directly with peers to discuss common issues and initiatives and accelerate, validate and solidify your strategy.
Gartner clients can log in to access the full library.
Attend a Conference
Experience Information Technology conferences
With exclusive insights from Gartner experts on the latest trends, sessions curated for your role and unmatched peer networking, Gartner conferences help you accelerate your priorities.
Gartner CIO & IT Executive Conference
São Paulo, Brasil
© 2026 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. It consists of the opinions of Gartner's business and technology insights organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner business and technology insights may address legal and financial issues, Gartner does not provide legal or investment advice and its insights should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its insights are produced independently by its business and technology insights organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity. Gartner publications and other content may not be used as input into or for the training or development of generative artificial intelligence, machine learning, algorithms, software or related technologies.
