Second generation generative AI applications are appearing on the market and with that is coming a change in pricing. First generation applications tended to copy existing pricing models, but now that buyers and sellers are becoming more familiar with generative AI generative pricing is moving from consumption to hybrid and generative approaches.

In many industries the pricing metric and even pricing levels are frozen accidents. They were established in the past for reasons no longer known and endure through convention. Look at your pricing and ask questions. “Why this pricing metric?” “Whose interests does this pricing metric serve?” “How does pricing shape profit pools?” Pricing’s past does not need to determine its future.