December Recap – Top 2023 Industry Moments, What SaaS Can Expect in 2024, & What the New EU AI Regulation Means

Welcome to December's edition of SaaSCentral, a Teem | Global SaaS GtM Recruitment monthly roundup of exciting news in the SaaS start-up world, hiring tips, and industry trends! On this month's edition…

?? Top SaaS moments in 2023.

?? 2024 Industry Predictions.

?? EU tackles AI regulation.

Top SaaS Moments of 2023

We saw it all last year: the (still ongoing) AI craze. The Silicon Valley Bank crash. The OpenAI drama…

But amidst it all - and with some slight macroeconomic headwinds - start-up leaders have achieved something exceptional: growth.

Watch our video to recap on last year in the SaaS industry! ??

Industry Predictions for This Year

It is expected that SaaS will grow to be worth $232bn by the end of this year. That will be a 7th year of growth, making it one of the few industries to have consistently charted an upward trajectory in recent times. So, expect intensifying competition for top talent and necessitating innovative recruitment strategies.

While the economic recovery may bring an uptick in VC deals, stricter due diligence will prevail. CEOs and CFOs must prioritize robust unit economics, demonstrable product-market fit, and clear long-term viability plans to secure funding.

AI's prowess in automating processes and tackling intricate challenges positions it to continue its domination in the market. With the EU being the first governing body to regulate AI, we could also see others follow suit.?

EU Regulates AI

In December last year, a provisional agreement was finally reached on the EU’s AI Act, which will add extra legal requirements to tech businesses and start-ups using AI models in Europe. The act will reshape the regulatory landscape for European operations, and provide opportunities for leaders to build trust, secure market position, and lead the way in responsible AI.

According to Sifted , the EU will introduce a two-tiered approach based on whether there is “systemic risk” (determined by whether they have “high impact capabilities”, and the amount of computer power it was trained on).

Risk-based approach: AI systems are categorized as "high-impact" or "low-risk," with stricter rules for the former.

Open-source advantage: Open-source systems are exempt, which could see American companies disproportionately affected (notable European vendors, like the much-discussed French start-up, Mistral, are open-source).

However, it is worth noting that it is not expected to come into force until late 2024-2025, and will likely have some form of grace period.

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