In contrast, Microsoft has opted for a traditional pricing model, charging $30 per user per month for its Copilot features, on top of the regular Office 365 subscription cost. The article also highlights the challenges faced by SaaS companies in implementing generative AI features, as discussed by Christine Spang, co-founder and CTO at Nylas, and Manny Medina, CEO at Outreach, at a panel discussion at Web Summit. Spang emphasized the need for software companies to find ways to incorporate generative AI into their products, despite the gap between the hype and current reality.
Key takeaways:
- Box has introduced a new pricing model for its generative AI features, where each user gets 20 credits per month, with additional credits available from a company pool. If a customer surpasses the pool, they would need to discuss buying additional credits with a salesperson.
- The new pricing model is designed to charge based on usage, taking into account that some users would use the AI features more than others, and also accounting for the cost of using the OpenAI API.
- Microsoft, on the other hand, has opted for a more traditional pricing model, charging $30 per user per month to use its Copilot features, in addition to the cost of a regular Office 365 subscription.
- Christine Spang, co-founder and CTO at Nylas, and Manny Medina, CEO at Outreach, discussed the challenges that SaaS companies face in implementing generative AI features, emphasizing the need for software companies to find ways to incorporate this technology into their products.