GTM 139: AI Agents Are Changing Everything — Microsoft’s VP of AI Agents on the New Era of Work and Software | Ray Smith

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Mar 25, 2025

Ray Smith, Microsoft’s VP of AI Agents and former CEO of DataHug, explores the revolutionary impact of AI agents on business. He explains how these agents differ from traditional bots and automation, driving ROI and reshaping team structures. Ray discusses the challenges of adapting SaaS pricing models to fit an agent-first world and shares real-world applications of AI at Microsoft. He also highlights essential skills in this new era, emphasizing the importance of customer relationships and strategic thinking for business success.

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INSIGHT

Agent Pricing Models

Traditional per-seat SaaS pricing doesn't work for AI agents due to their scalability.
Consumption-based models are emerging, tied to the agent's complexity and resource usage.

ADVICE

Starting with AI Agents

Don't feel overwhelmed by AI's potential applications; start with a focused use case.
Break down processes into smaller, agent-manageable tasks, even with humans involved initially.

ANECDOTE

Real-World Agent Impact

Pets at Home built a fraud detection agent in under a week, significantly speeding up risk assessment.
Dow Chemical disrupted invoice processing with agents, reclaiming overcharges and improving efficiency.

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Ray Smith is the VP of AI Agents at Microsoft. Previously, he was the Global VP of Product for SAP, CRM and Sales Cloud. Before that, he was the CEO and Co-Founder of DataHug, which was acquired by Calidus Cloud in 2016.

Ray breaks down why the rise of AI agents is a tectonic shift, how businesses are already seeing ROI, and what it means for SaaS, team structure, and go-to-market strategies. He also shares real-world use cases from inside Microsoft and partner companies, plus how founders and operators can build or adapt in this new AI-native era.

Discussed in this Episode:

What exactly is an AI agent—and how is it different from bots or automation?
Why traditional SaaS pricing models (like per-seat) don’t work in the agent era.
How enterprise teams are already deploying autonomous agents in production.
The emerging architecture of multi-agent workflows.
Which skills will matter most in an agent-first world (hint: think like a GM or growth hacker).

Highlights:

06:53 What makes an AI agent different from bots and automation—and why it matters now.

15:33 How AI agents are changing the role of traditional software tools and UI.

25:15 Why legacy SaaS pricing models don’t work for agents—and what comes next.

31:12 Inside Microsoft CoPilot: Real-world agent use cases across sales, support, and strategy.

37:42 The most valuable skills in the AI era—from delegation to agent orchestration.

51:42 Why agentic AI makes customer relationships and long-term value even more critical.

Guest Speaker Links (Ray Smith):

LinkedIn: https://www.linkedin.com/in/raycsmith/

Host Speaker Links (Scott Barker):

LinkedIn: https://www.linkedin.com/in/ssbarker/
Newsletter: https://thegtmnewsletter.substack.com/

Where to find GTMnow (GTMfund’s media brand):

Website: https://gtmnow.com/
LinkedIn: https://www.linkedin.com/company/gtmnow/
Twitter/X: https://x.com/GTMnow_
YouTube: / @gtm_now
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