Medha Agarwal shares her thoughts on an AI-first world! https://lnkd.in/gGppAZ8W #AI #pricingstrategy #techinnovation #SaaS #AIproducts #startupstrategy #businessmodel Ximei Li
⭐ At defy.vc we've been exploring the evolution of pricing in an AI-first world. 🚀 AI-first companies are shifting away from traditional SaaS models and embracing more dynamic, transactional pricing strategies to capture larger market opportunities—especially those tied to labor spend. 🔑 Why the Shift? With AI automating workflows and replacing manual labor, businesses are exploring new ways to price based on input or output rather than the typical subscription model. The goal? Align with customers' specific ROI and cost structures while tapping into industries where labor is a significant cost. 💡 Key Pricing Models for AI-First Products: 1. Fixed Cost (SaaS) – Ideal for daily-use cases, like AI generated marketing collateral or compliance checks. 2. Input-Based – Charges by consumption (e.g., data processed or queries made). Think of AI-powered discovery tools for law firms. 3. Output-Based – Pay for specific outcomes (e.g., automating administrative tasks in healthcare). 4. Hybrid Models – A mix of subscription and usage, giving flexibility without sacrificing predictability. 💬 When to Choose Which? It all comes down to how often your customers use the product, their existing budget for labor vs software, and how aligned your pricing is with the value they perceive. As the AI market grows, so does the opportunity to experiment with pricing that reflects real-world savings and efficiency improvements. The right model could unlock new revenue streams—and new value for your customers. Curious how to navigate this shift? Dive deeper into the pros, cons, and use cases of each pricing model. 🌟 Link to the full post in the comments. Thanks to Ximei Li for the collaboration and thought partnership! #AI #PricingStrategy #TechInnovation #SaaS #AIProducts #StartupStrategy #BusinessModel