AI Minute: New AI Business Models

Insight: “The future is already here, it’s just not evenly distributed yet.”

AI Business Minute: New AI Business Models

The Problem: Traditional tech pricing (user/usage-based) often fail to align with desired business outcomes like cost reduction and customer satisfaction, creating a value gap.

The Opportunity: AI delivers value by personalizing products, optimizing pricing, revenue, and efficiency in existing business models (e.g., Adobe Creative Cloud, Salesforce).

AI Business Models: Focus on achieving specific goals (e.g., reducing customer service costs), then determine necessary workflows (to deliver a result, not just a subscription), and they provide flexible outcome-based pricing.

New Pricing Levers: AI enables pricing based on predicting events, prescribing actions, generating insights, controlling processes, and intelligent interaction.

Recommendations for Tech Companies:

1. Tailor solutions to specific customer goals.

2. Focus on outcome-based pricing models.

   
   

Companies that adopt this approach will thrive in the age of AI.

Hope you make lots of money,

Lucas Petty

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