THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Will Salesforce’s stance on agent pricing frame AI pricing generally?
Salesforce has announced that it will use consumption pricing for its AI agents going forward. Why is Salesforce taking this approach? What are the implications for other Vertical AI companies? Results of our LinkedIn poll.
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?
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.
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.
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.
Core Concepts: Usage-Based Pricing
Usage-Based Pricing uses a measure of usage as a pricing metric. It is often combined with other pricing metrics to create a hybrid pricing model. Research has found that companies who include a usage-based metric grow faster. A well designed usage-based pricing metric connects price to value.
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