THE VALUE & PRICING BLOG

The latest stories, blog articles, and pricing news from the Ibbaka team

Steven Forth Steven Forth

Agent AI - an emerging packaging pattern

AI agents are emerging as a standard way to deliver AI functionality, especially in B2B. This has been underlined by Salesforce’s recent Agentforce announcements. Agent pricing is evolving from inputs and number of agents to actions and outcomes. This evolution is framing how we think about pricing generativeAI.

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Steven Forth Steven Forth

Generative pricing: agent pricing evolution

AI agents are emerging as a standard way to deliver AI functionality, especially in B2B. This has been underlined by Salesforce’s recent Agentforce announcements. Agent pricing is evolving from inputs and number of agents to actions and outcomes. This evolution is framing how we think about pricing generativeAI.

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Steven Forth Steven Forth

Adobe positions its approach to generative AI pricing

Adobe is investing heavily in generative AI and has begun to signal how it will approach pricing. It is taking an incremental approach. Price remain anchored in a per seat price, but plans are becoming more flexible, and more expensive!

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Generative AI, AI Pricing, Monetization Liam Hannaford Generative AI, AI Pricing, Monetization Liam Hannaford

Monetizing GenAI Roundtable Webinar: On-Demand Recording

Ibbaka had the pleasure of hosting a roundtable discussion on Monetizing Generative AI, featuring two industry luminaries: Michael Mansard from Zuora and Kyle Poyar from OpenView Partners. Generative AI is going to transform how we build B2B applications, how we configure them, how we move to dynamic configuration, and all of that is going to have a huge impact on both monetization and pricing.

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Steven Forth Steven Forth

Pricing thought: OpenAI will price reasoning tokens in o1

OpenAI's o1 models are getting a lot of attention. They are a phase change for how we work with generativeAI. OpenAI has also shared how it will approach pricing of this first version of reasoning models. Reasoning tokens. What are the implications for generative AI pricing generally?

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Steven Forth Steven Forth

How should OpenAI price o1?

OpenAI has released o1, it next generation approach to generative AI reasoning and problem solving. If you were OpenAI, how would you price this innovation? We summarize the results of a flash poll, give some analysis and provide our own recommendation.

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Steven Forth Steven Forth

Pricing patterns for generative AI

Most companies monetizing generative AI are using hybrid pricing models where they combine more than one pricing metric. You can see that in the survey we are running to prepare for the Sept. 19 roundtable on monetizing generative AI. What metrics tend to be used together? We ran the data through a Leiden algorithm to find the clusters.

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Steven Forth Steven Forth

Ask your questions on generative AI monetization

Join our Sept. 19 roundtable on generative AI monetization. Kyle Poyar from OpenView and Growth Unhinged, Michael Mansard from Zuora and Steven Forth will have an open conversation on how second generation applications are getting priced and monetized. Take this three minute survey and prime your questions for this important session.

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Steven Forth Steven Forth

Steps on the path to generative pricing

Generative pricing emerged as a response to the pricing requirements of second generation generative AI applications, but the five steps at the heart of the approach are generally applicable. They provide a foundation for a new approach to price optimization, one based on the value being delivered.

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Steven Forth Steven Forth

The Path to Generative Pricing

Generative pricing will come to dominate B2B SaaS pricing over the next decade, but most companies will begin by taking small steps to get there. The five steps are to (i) build a value model, (ii) use feature flags, (iii) map features to value, (iv) design a pricing model based on the feature-value mapping, (v) have pricing define configuration (or vice versa).

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Steven Forth Steven Forth

Pricing approaches for generative AI applications

How should generative AI applications be priced? We asked our community in a flash poll, here are the results and our point of view on the emerging best practices for monetization and pricing of generative AI applications.

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Steven Forth Steven Forth

Generative Pricing

Applications built on generative AI platforms have emerging properties and will need a new approach to pricing. Software applications are becoming composable, conversational and adaptive. Pricing needs to respond. A new approach to pricing is needed. Let’s call it generative pricing.

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Steven Forth Steven Forth

AI pricing metrics showing up in multiple SaaS verticals

Certain pricing metrics are associated with AI applications. In this year’s PeakSpan Ibbaka Survey of NRR we are seeing pricing metrics associated with AI showing up in multiple verticals, a significant change from last ear.

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