AI Pricing: Early insights from the AI Monetization in 2024 research
There have already been more than 100 responses to the AI Monetization in 2024 survey, 121 to be precise so far. Enough to see some trends emerge. In this post, we take an early look at some of the results.
If you have not already taken the survey and your company has invested in AI for product or service innovation, please take a few minutes to do so. It will be open until November 15.
Taking this survey will help you think through your approach to monetization. When the survey results are published, they will help you put your strategy in context.
There are several ways to think about AI monetization.
Value Lens
Market Lens
Packaging Lens
The survey explores AI monetization using all 3 of these lenses.
Here are some preliminary results to whet your appetite.
We began by asking “What is your general attitude towards artificial intelligence?”
People taking the survey have some interest in AI and are more likely to be implementing it. So these results likely overstate interest in AI in the overall B2B SaaS market.
We then asked, “Over the next three years, AI will have …”
Respondents varied in their level of commitment.
There is a wide range in the percentage of R&D budgets going to AI.
Note that almost 25% of companies said they are ‘All In’ but only 14% are devoting 100% of their R&D budgets to AI.
And a corresponding range of expectations on how much AI will contribute to 2024 revenues.
There are many other insights to be gleaned from this survey. There are questions on pricing metrics, packaging patterns and growth motions. One question we are looking forward to digging into is “How will you measure the value that AI is providing to customers?” The answer options we chose were …
Customer Satisfaction Score
Net Promoter Score
Economic Value Delivered
Customer Level Net Revenue Retention (if a customer is willing to spend more on your solution they must be getting value)
Emotional Value Metrics
Other
Most of the ‘Other’ responses so far have been TBD or some equivalent, though “New Sales” and “Investment” have been mentioned.
The survey will be open for another two weeks. Please share your insights.
Pricing for NDR (Net Dollar Retention)
Executing on usage based pricing
What to price? What to optimize? How to optimize? Three key pricing questions
When and how to change your pricing metric
How to introduce usage-based pricing
New skills for usage-based pricing
Value paths are the key to usage-based pricing
Pricing under uncertainty and the need for usage-based pricing
Enabling Usage-Based Pricing - Interview with Adam Howatson of LogiSense