The article also discusses the challenges for incumbent SaaS vendors in transitioning from seat pricing to consumption pricing, and suggests that new businesses are being created to provide metered or consumption pricing as a service. It concludes by suggesting that the transformation to consumption pricing will provide a boost to the industry and the global economy, with customers paying less and getting more, and service providers capturing the vast potential of AI technology.
Key takeaways:
- AI represents a new way of thinking about how software is built and consumed, requiring new approaches to pricing, packaging and business models.
- AI shifts the unit of value from users to jobs, making the unit of value more analogous to a human worker than a subscription service.
- Price points and pricing models for AI-powered solutions will likely vary based on the capabilities or specializations of the AI agents.
- Transitioning to consumption pricing for AI services will be a challenge, especially for incumbent SaaS vendors, but the potential gains are significant.