Core tensions between innovation and cost structure
There’s a lot of tough considerations to make around this case study and whether or not an AI chatbot should be deployed for PulsePoint. But I think that it ultimately boils down to how the company should package and frame this project.
On one hand, there’s this concern that such a deployment will come off as a headcount-cutting initiative across sales, replacing lower level staff with bots and investing in higher level agents that can close bigger deals. On the other hand, there’s also this risk that the longer the company waits, the larger the competitive gap becomes. Everything ultimately boils down to how the company wishes to market their values and what their differentiator would be moving forward.
Lead with R&D approach, not workforce replacement
My take: PulsePoint should deploy, but reframe the entire approach. The initial pitch—cutting 30% of the sales force—was the fatal mistake. That framing made it sound like a cost-cutting initiative rather than a value creation opportunity, which is why it triggered resistance from executives and their biggest client.
Instead, I believe PulsePoint should take a more incremental approach. Invest into this AI chatbot project and frame it as an R&D effort to explore existing opportunities and what their customers would prefer. Start by deploying the bot for lower-complexity interactions where it genuinely excels—remembering every customer detail, predictive anticipation of needs, consistent service delivery. Meanwhile, redeploy human salespeople to focus on high-value deals and complex relationships.
It’s important to consider the wins and losses in either route, but it’s also important to implement what the company hears from their client base’s preferences into the feedback loop. Their biggest customer rejected AI service because they value deep relationships and have data privacy concerns. By maintaining human touchpoints for strategic accounts while offering AI-assisted options, PulsePoint can test the market without alienating their core customers.
