Enterprise hits and misses - agentic AI disrupts software pricing, but how much and how soon? Plus: the best of 2024

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Enterprise hits and misses - agentic AI disrupts software pricing, but how much and how soon? Plus: the best of 2024

The article explores how agentic AI is poised to disrupt traditional software pricing models, particularly the per-user seat pricing. It discusses the potential shift towards outcome-based pricing, which aligns costs with the results delivered by AI solutions. The challenges of quantifying outcomes and the need for seamless workflows across software vendors are highlighted as significant hurdles.

Emerging pricing models, such as consumption-based pricing and labor-like pricing for AI agents, are examined as alternatives to fixed subscriptions. The article emphasizes that the current generation of AI will fundamentally change enterprise software, similar to the transition from on-premise solutions to cloud-based systems. The debate over the pace of this change and the competitive landscape for AI startups versus established players is expected to continue throughout the year.

• Agentic AI may disrupt traditional software pricing models significantly.

• Outcome-based pricing is emerging as a preferred model for AI solutions.

Key AI Terms Mentioned in this Article

Agentic AI

Agentic AI refers to AI systems that can perform tasks autonomously, impacting software pricing models.

Outcome-based pricing

This pricing model charges based on the results delivered by AI solutions rather than fixed fees.

Consumption-based pricing

A pricing strategy where costs are based on the actual usage of AI services, promoting flexibility.

Companies Mentioned in this Article

Box

Box is a cloud content management platform that leverages AI for enhanced productivity and collaboration.

OpenAI

OpenAI develops advanced AI technologies, including language models, and is exploring sustainable pricing strategies.

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