How the Cognitive Stack (not just AI) is Reshaping the Enterprise
New applications are transforming how businesses operate and the most effective companies are leveraging a framework known as the Cognitive Stack—a layered approach to AI-powered automation. As investors, we see this as one of the most significant shifts in enterprise software, unlocking efficiency, intelligence, and automation at scale.
Understanding the Cognitive Stack
The Cognitive Stack consists of four key layers, each playing a vital role in automating business functions:
- Perception Layer – AI interfaces that capture and interpret company and external data.
- Use Cases: Intelligent customer service (AI-driven chatbots), context-aware sales (Gong’s conversation intelligence), and smart assistants (Moveworks for IT and HR automation).
- Reasoning Layer – AI-driven decision engines that analyze data and recommend actions.
- Use Cases: Dynamic pricing (Zilliant optimizing enterprise pricing strategies), resource planning (AI-powered inventory forecasting), and risk assessment (AI fraud detection in banking).
- Action Layer – Automated agents executing business decisions.
- Use Cases: Contract automation (Ironclad’s AI-driven legal workflows), deal intelligence (AI-powered CRM insights), and marketing optimization (Persado’s AI-generated content outperforming human copy).
- Orchestration Layer – AI coordination engines managing workflows across systems.
- Use Cases: Business operations hubs (AI-automating enterprise workflows), real-time optimization (AI-driven supply chain management), and knowledge graphs (AI-enhanced enterprise search and retrieval).
Why This Matters for Founders and Investors
The shift to AI-driven enterprises is accelerating. Companies that successfully integrate AI at every layer of the Cognitive Stack will outcompete slower adopters.
- Efficiency Gains: AI automates repetitive tasks, reducing operational costs. AI chatbots alone save companies over $11 billion annually in customer support.
- Revenue Growth: AI-powered sales and marketing solutions boost conversion rates—JPMorgan Chase saw a 450% increase in engagement with AI-generated ads.
- Better Decision-Making: AI-driven insights enhance business strategies, leading to higher win rates in sales and optimized pricing.
- Competitive Advantage: Businesses embracing AI orchestration gain agility, executing workflows faster and at scale.
The Future of the AI-Powered Enterprise
The rise of AI-powered cognitive stacks marks the next frontier in enterprise technology. Startups that build solutions integrating perception, reasoning, action, and orchestration will define the future of business automation. The opportunity for founders is massive—those who deliver real, measurable business value through AI will attract customers and investors.
The Cognitive Stack isn’t just another trend; it’s the foundation of the next generation of intelligent enterprises. The companies that master it today will lead the markets of tomorrow.