Conventional approaches to pricing are not fit for purpose when it comes to pricing generative AI applications for B2B. A new process is needed. Ibbaka is proposing generative pricing, a mashup (or concept blend) of dynamic pricing and value based pricing.

There is a lot of noise in the pricing world about how pricing will evolve over the coming years. Some say dynamic pricing will dominate. Others remain focussed on value-based pricing. There is more and more discussion of outcomes or results based pricing. Other people have already begun to speculate about machine-to-machine pricing. People in the Professional Pricing Society’s LinkedIn Group and in the Coalition for the Advancement of Pricing have shared their thoughts. We summarize these here and provide some additional structure.

Dynamic pricing is a hot topic in pricing circles. Some experts are predicting that it will dominate pricing in the future. As sellers move to dynamic pricing buyers may move to dynamic buying. This sounds a lot like automated trading and machine auctions. Is this the best direction for pricing? Will it lead to transparent, consistent and fair pricing? At Ibbaka we believe performance-based pricing is often a better option.