AI's Pricing JourneyExploring the evolution of AI pricing models

Over the past two years, AI pricing has evolved from Pay-As-You-Go Pricing to Credit-Based Pricing, eventually moving toward Progressive Billing and Success-Based Pricing. The journey is far from over, but some common patterns have emerged. Pay-As-You-Go Pricing allows organic account growth but lacks long-term customer commitment. Pre-Purchased Commitments offer predictable revenue for vendors but can be challenging for customers to manage their budgets. Credit-Based Pricing is customer-friendly, but running out of credits can cause service disruptions. Recurring Prices with Usage-Based Components ensure baseline revenue for vendors but may not suit seasonal customers. Progressive Billing keeps vendor upfront costs low but makes it difficult for customers to predict their costs. Success-Based Pricing aligns price with delivered value but can be complex and subjective in defining and measuring success. As customers seek stability and value-aligned pricing, more innovative monetization models are expected to emerge.