When should AI companies think about their pricing?

Pricing strategy plays a crucial role in the success of an Artificial Intelligence (AI) company as it impacts market position, customer acquisition, revenue, and long-term growth. The traditional seat-based pricing model used by many Software as a Service (SaaS) companies may not be suitable for AI businesses due to fundamental differences in their value propositions. Instead, usage-based or hybrid pricing models can offer more promising routes. Usage-based pricing aligns the value proposition of an AI service directly with its pricing and encourages customers to experiment and innovate with the services on offer. Hybrid pricing combines elements of both seat-based and usage-based pricing, allowing companies to capture value from individual users while also monetizing overall usage of their service.