HubSpot’s AI Playbook: The Future of SMB Strategy?

HubSpot just dropped their Q4 earnings, and AI is front and center. But can they actually make money from it? I am going to break down what’s working, what’s not, and what this means for small businesses like yours.

Back in September 2024, HubSpot laid out its strategy during its Analyst Day presentation, outlining key priorities, including AI integration, multi-hub expansion, go-to-market scaling, and a push for durable and efficient growth. I have studied the presentation at length and committed to following up later to see if any of it has come to life. Fast forward to their Q4 earnings call, and we now have a clearer picture of what’s working, what’s not, and how small businesses can apply these insights to their own strategies.

Below are some of my notes, comparing what they said in September 2024 and what they reported in February 2025.

HubSpot’s Strategy: What Was Planned vs. What Happened

1️⃣ AI as a Core Growth Driver

What HubSpot Planned: AI would be embedded across their entire platform, enhancing every product rather than being a separate add-on. They introduced Breeze Intelligence, AI-powered Copilots, and Agent AI to improve productivity and automation.

What Happened in Q4: AI adoption has taken off, with Breeze Copilot reaching 75,000 weekly active users. AI is driving efficiency across customer support (handling 35%+ of support tickets) and sales prospecting (setting 10,000+ meetings in Q4).

💡 What This Means: AI is not just hype… HubSpot is proving that embedding AI is leading to efficiency gains and improved customer experiences. However, they still haven’t directly monetized AI, though they hinted at future usage-based pricing.

2️⃣ Multi-Hub Expansion and Customer Retention

What HubSpot Planned: Increase multi-hub adoption to make customers more reliant on their ecosystem. They aimed to upsell their Smart CRM, Content Hub, and Engagement Hubs.

What Happened in Q4: 35% of Pro+ customers now use 4+ hubs, up 7% YoY. Large deals grew 21% YoY, and customer retention improved with net revenue retention (NRR) increasing to 104%.

💡 What This Means: The more products customers use, the less likely they are to leave. HubSpot is successfully making itself a must-have platform rather than a one-off tool.

3️⃣ Go-To-Market Strategy and SMB Caution

What HubSpot Planned: Expand through digital-driven, partner-driven, and sales-driven models, making it easier for small businesses to start with HubSpot and scale up.

What Happened in Q4: SMBs are still value-conscious, making upselling slower than expected. However, co-selling with partners increased 68% YoY, proving that partnerships remain a key growth lever.

💡 What This Means: SMBs are hesitant to commit to higher-cost plans but still value entry-level, flexible pricing. HubSpot’s partner model is proving successful for scaling efficiently.

Lessons for Small Businesses

Now that I’ve analyzed HubSpot’s execution, let’s translate these insights into actionable lessons for SMBs.

1️⃣ Start Using AI Now—Monetization Can Come Later

HubSpot’s success with AI adoption shows that even small businesses can integrate AI into their workflows. Whether it’s AI-driven customer support chatbots, automated email replies, or data analysis, start experimenting now.

💡 Lesson: Use AI to streamline your processes before worrying about monetizing it. Prove value first, then explore pricing models.

2️⃣ Make Your Product Ridiculously Easy to Use

HubSpot removed seat minimums and improved onboarding to reduce friction for new customers. The result? Higher retention and easier customer adoption.

💡 Lesson: The easier it is for customers to start using your product, the less likely they are to leave. Offer free trials, simplify onboarding, and make the first step seamless.

3️⃣ The More Ways Customers Rely on You, the Better

HubSpot’s multi-hub strategy is working because it makes customers dependent on multiple solutions within their ecosystem.

💡 Lesson: Find ways to bundle services, upsell complementary products, or provide value that makes switching away difficult.

4️⃣ SMBs Want Value; Flexible Pricing Wins

HubSpot’s seat-based pricing model helped drive revenue growth, but many SMBs remain cautious about spending. Flexible options make it easier for businesses to start small and scale up.

💡 Lesson: Offer tiered pricing, trials, or starter packages to attract hesitant buyers and increase long-term revenue.

5️⃣ Partnerships Can Scale Your Business Faster Than Marketing Alone

HubSpot’s 68% YoY growth in co-selling with partners highlights how leveraging relationships can accelerate growth.

💡 Lesson: Find partners who can sell, integrate, or refer your business. This can expand your reach without heavy marketing costs.

Final Takeaways

✅ AI is here—use it now, worry about monetization later.
✅ Make it easy for customers to start and get value quickly.
✅ Build an ecosystem—sell more than just one product or service.
✅ Offer flexible pricing that matches customer needs.
✅ Leverage partnerships for scalable growth.

HubSpot’s strategy isn’t just relevant for large enterprises, it’s a playbook small businesses can learn from. If you’re looking to grow smarter, not harder, these lessons will help you future-proof your business.