Defining AI ARR to Your Board and Investors

Every Board, investor, and potential acquirer is asking the same question: How are AI initiatives driving revenue? In episode #315, Ben Murray shares insights from his research into public tech companies and how they’re defining and disclosing AI ARR (Annual Recurring Revenue). Using Verint as a case study, Ben explains how companies are leveraging AI-driven ARR, tying it to measurable outcomes, and communicating adoption in a way that resonates with both Wall Street and buyers. You’ll also hear how these disclosures may have supported Verint’s recent multibillion-dollar acquisition by Thoma Bravo. If you’re a SaaS or AI operator, this episode will help you define AI ARR, communicate adoption signals, and position your business model for higher valuation. What You’ll Learn What AI ARR is and how to calculate it. Why public companies like Verint are breaking out AI ARR from total ARR. The mechanics: how finance teams identify AI-influenced products and SKUs. Quantitative + qualitative adoption signals (e.g., number of users leveraging AI features). Why AI ARR disclosures matter for investor metrics and exit valuations. How Thoma Bravo’s acquisition of Verint shows the value of communicating AI initiatives. Why It Matters For SaaS & AI Leaders: Properly defining AI ARR helps show investors where new growth is coming from. For Finance Teams: Accurate reporting requires collaboration across accounting, product, and FP&A. For Investors: AI ARR signals measurable adoption and future revenue growth. For Valuation: Tying AI initiatives to financial outcomes increases credibility in fundraising and exit scenarios. Resources Mentioned Blog Post: How to Define AI ARR: https://www.thesaascfo.com/ai-arr-vs-saas-arr-how-to-define-and-calculate/ The SaaS Metrics Academy: https://www.thesaasacademy.com/ Quote from Ben “Don’t just say you’re building AI into your product — show investors how much ARR it’s driving and what outcomes it’s creating.”