Key Takeaways
The models and applications for generative AI can unlock more of their transformative potential if their developers devise smarter pricing strategies rather than defaulting to familiar tech-industry options.
- The right pricing strategy depends on how a solution creates value for customers, how differentiated it is, and how its cost structure will evolve.
- Those answers can help determine whether a consumption-based, subscription-based, or outcome-based pricing model is best suited to the solution and to the company’s short- and long-term goals.
- Choosing price points and models without a clear pricing strategy can cost the company an opportunity to shape its market, because it can slow down adoption, put margins at risk, and open opportunities for competitors.