CASE STUDY · AI SAAS

The model was not the moat. The data layer was.

An AI-native SaaS that worked, and read like a black box.

A confidential eight-person team built real AI for electrical distribution. The product functioned. But buyers could not see the value, and investors could not price the company. I rebuilt the commercial layer so the technology finally made sense to the people writing checks.

Electrical distribution looks like an AI problem until you get close. Then it is a messy data problem wearing an AI costume.

The problem

The AI is the easy part. The data is the job.

A distributor sells breakers, conduit, gear, and fittings across a catalog north of 300,000 items. The inputs are a mess. PDFs. Handwritten bills of material. Emails with half a part number. Vendor aliases for the same SKU. ERP records missing the attributes you actually need to quote.

The founders had trained a model that read all of it. Impressive. It also hid the real work. The hard part was never the language model. It was making 300,000 items legible enough that a machine could trust them.

  • Match accuracy stuck at 80%, which sounds fine until one in five quotes is wrong.
  • The pitch sold the AI, not the outcome. Buyers heard hype, not margin.
  • Pricing was flat, so heavy AI users quietly ate the gross margin.
The number that moved

From one wrong quote in five to near certainty.

Product-match accuracy
+18 pts after the data layer was rebuilt
80%
Before
98%+
Now
And when there is no exact match, the system surfaces valid alternatives instead of failing silent.
What 18 points buys
1 in 5 → 1 in 50 quotes that need a human rescue
Error rate collapses from roughly 20% to under 2% across the 300k+ item catalog.
The signature system

Messy input in. A priced, grounded quote out.

This is the pipeline the whole business runs on. Raw distribution chaos on the left. A quote a rep can send on the right. Every stage exists to make the product data trustworthy before the model ever speaks.

Raw inputs
PDF spec sheets
Bills of material
Half-typed emails
Vendor aliases
Partial ERP records
NORMALIZE
Catalog intelligence
Resolve aliases, fill attributes, map every input to a canonical SKU.
RETRIEVE
Vector / RAG
Pull the right products and valid alternatives from the grounded catalog.
ASSIST
LLM quote assist
Draft the quote from grounded data, never from a hunch.
OUTPUT
ERP-grounded quote
Priced, in-stock, sendable. 98%+ right on the first pass.

The founders sold stage three. The value lives in stage one. My job was to make the whole line legible to a buyer and an investor, then price for it.

The compounding part

A moat you build on purpose.

If the system cannot trust the product data underneath it, the LLM is just a confident intern with a calculator.

Every quote the system resolves teaches the catalog something. A new alias mapped. A missing attribute filled. A better alternative learned. The data layer gets sharper the more the product runs, and a competitor cannot copy that overnight because they have not done the resolving. The word here is moat, and it is earned, not claimed.

I paired that with pricing that finally matched the cost. This product burns real compute per customer. So I built usage-metered AI pricing that bills for the model cost it actually spends, per customer. Heavy users pay for heavy use, gross margin holds, and the unit economics stop leaking.

  • Positioning rebuilt around the outcome, a quote you can trust, not the model.
  • Data-moat strategy that turns every run into a durable, compounding asset.
  • Usage-metered pricing that meters per-customer model cost to protect margin.
Where it landed
98%+
Product-match accuracy, up from 80%
300k+
Items in the live catalog, plus surfaced alternatives
Metered
Usage-based AI pricing that protects gross margin
8
Person team, now legible to buyers and investors
The point

An AI product is not sold by its model. It is sold by the data underneath it and the story on top of it. This team had the hard technology. What they needed was a commercial layer that made the technology legible, defensible, and priced for the compute it burns. That is the Chief AI Officer job. Not the demo. The business around it.

The AI was never the hard part. The data was the whole job.