The State of Artificial Intelligence (AI) in Revenue Performance Management

Sales performance management (SPM) is poised for a major transformation in the coming years, driven in part by the immense opportunity and growing adoption of artificial intelligence (AI). 

One example of this can be seen in the potential use cases existing within  incentive compensation management (ICM), especially due to the size and strategic importance of sales compensation programs, which often account for up to 60% of the department's budget — the largest single expense within sales operations.

[BLOCKQUOTE
| Quote: Given the impact of sales compensation on a sales department’s budget, we want to make sure this spending is optimized [by leveraging AI] and that these dollars are used efficiently and effectively generating revenue.
| Author: Deima Tankus
| Title: AI Research, The Alexander Group
]

AI tech innovation ensures that RevOps teams are making the most of sales compensation costs, unlocking:  

• Greater efficacy. CaptivateIQ’s 2024 State of Incentive Compensation Management report highlights that 59% of compensation professionals who incorporate AI into their workflows are more likely to calculate commissions in a timely manner. 
• Increased efficiency. According to PWC’s 27th Annual Global CEO Survey, for example, 64% of CEOs expect generative AI to create efficiency benefits in the next 12 months.
• Boosted productivity.  Per a recent Gallup study, 45% of employees say their productivity has improved with AI. This is promising for revenue leaders, since 91% of organizations reported making changes to their compensation plans in 2024 to better align with their goals of increasing sales performance.

Despite AI’s transformative potential, some Revenue and Sale Operations teams have yet to embrace and implement AI in a meaningful way. This guide will delve into key trends, challenges, best practices, and predictions for integrating AI into sales performance management processes – particularly within ICM.