How SMBs Can Build Internal AI Tools to Cut SaaS Costs

In today's rapidly evolving business landscape, small and medium-sized businesses (SMBs) are always looking for efficient ways to streamline operations and optimize costs. One transformative trend reshaping how SMBs manage customer service, operations, and more is the use of AI to create custom internal tools. While many organizations focus on cutting headcount to save costs, Jenny, Vice President of People at Versel, suggests a different perspective: AI will first reduce the need for costly third-party software (SaaS) tools instead of eliminating jobs.

This article explores how businesses can innovate by building their own AI-powered tools, cut unnecessary software expenses, and foster a culture of adaptability. With insights from Jenny’s team at Versel and practical examples, here’s how to stay ahead in the AI era.

The Rise of Internal AI Tools: A New Era for SMBs

Traditional SaaS platforms have been critical for SMBs to support growth and improve efficiency. However, as companies look to customize processes and save costs, the rigid templates of SaaS tools often fall short. Enter AI-based internal tools. These allow companies to create tailored systems that better fit their needs while eliminating expensive annual software subscriptions.

Jenny highlights how her team at Versel has taken the lead in creating custom tools using Vzero, a text-based, no-code platform that allows users to build web applications quickly. This approach has not only saved money but also provided more flexibility to meet the unique needs of their organization.

How SMBs Can Start: Areas to Target for Change

Jenny emphasizes that building custom tools doesn’t require a massive budget or a deep technical background. Instead, it starts with identifying key areas where an internal tool could replace an existing SaaS product. Below are practical examples from Versel’s experience:

1. Compensation and Rewards Visualization

Versel’s team used Vzero to replace a feature provided by an external vendor, Pave. The custom-built tool enables candidates to visualize their salary and equity growth in a clear and engaging way - complete with toggles for different company valuations.

By building the tool internally, the team eliminated costly vendor fees while gaining the ability to fully tailor the user experience.

2. Org Chart Tools

Rather than subscribing to dedicated org chart software (which can cost $20,000–$40,000 annually), Versel’s HR team built an internal org chart tool. This solution provides the same functionality while allowing for customization and direct integration into their workflows.

3. Sourcing Tools for Recruiting

Versel’s sourcing team also leveraged Vzero to create custom tools for recruiting efforts. This innovation allowed the company to further reduce reliance on third-party platforms while improving efficiency in finding and hiring talent.

Fostering a Culture of Innovation

For AI to truly transform SMBs, building a culture that supports innovation is key. Here’s how Versel promotes a forward-thinking mindset across the organization:

1. Beta Testing and Hackathons

Jenny’s people team regularly runs internal AI hackathons and show-and-tells. For example, a recent off-site included a full day dedicated to exploring how AI could streamline people operations.

These sessions allow for experimentation, foster buy-in, and identify specific opportunities to implement AI tools effectively.

2. Collaboration Between HR and Finance

HR leaders at Versel work closely with the CFO to identify efficiencies across the organization. By focusing on areas where spend can be reduced, such as SaaS tools, HR teams play a critical role in driving cost-saving initiatives.

3. Encouraging Hands-On Learning

Jenny stresses the value of learning by doing. Rather than spending time theorizing about AI’s potential, SMBs should dive into building simple tools - even for fun. For instance, she built a tool that allows her to visualize how furniture would look in her apartment using AI.

The Future of SaaS: Customization Is Key

Jenny’s vision for the future of B2B tech revolves around customization. With platforms like Vzero, companies can create tailored software solutions that adapt to their specific needs. Features like "forking" (cloning an existing tool and building on top of it) make it possible for businesses to quickly iterate and innovate.

This type of innovation isn’t just about saving money - it’s about creating tools that truly align with how your business operates.

Key Takeaways

• AI Cuts SaaS Costs, Not Jobs: Focus on replacing expensive tools before considering headcount reductions.
• Build for Customization: Internal tools allow businesses to tailor solutions to their specific needs, offering flexibility that SaaS products often lack.
• Start Small: Begin by building a simple tool, even if it’s not directly related to a business function. Hands-on experience is invaluable.
• Target High-Impact Areas: Evaluate tools with the highest cost or those that require significant customization, such as compensation visualization, org charts, and recruiting tools.
• Promote a Culture of Experimentation: Host hackathons, collaborate across teams, and encourage employees to share creative ways to use AI.
• Collaborate with Finance: Work with your CFO to target spending inefficiencies and allocate resources intelligently.
• Anticipate SaaS Evolution: The future of SaaS may involve marketplaces where businesses can fork and customize tools to suit their workflows.

Conclusion

The AI era is here, and it’s changing how SMBs operate. Instead of relying on a one-size-fits-all SaaS model, businesses can use tools like Vzero to create custom internal solutions. This not only saves money but also empowers teams to work more efficiently and flexibly.

HR leaders and managers play a critical role in adopting these changes, fostering cultures of innovation, and driving experimentation. By starting small and focusing on high-impact opportunities, your organization can stay ahead in this rapidly evolving landscape.

The future of work isn’t just about using AI - it’s about building with AI. And for SMBs ready to take the plunge, the possibilities are endless.

Source: "249 – AI’s First Cuts Are SaaS Tools: Jenny Molyneaux (VP People, Vercel)" - The Modern People Leader, YouTube, Aug 25, 2025 - https://www.youtube.com/watch?v=yYFmD7kqqmw

Use: Embedded for reference. Brief quotes used for commentary/review.