The AI pricing conundrum – it started as a nightmare, now it's worse
The article discusses the challenges enterprise IT leaders face in determining effective pricing models for AI technologies. It highlights the disconnect between IT's desire for ROI-based pricing and AI vendors' preference for consumption-based models. The complexities of measuring AI's value and the risks associated with different pricing strategies are emphasized.
- ▪Enterprise IT leaders struggle with AI pricing and delivering ROI.
- ▪There is a disconnect between enterprise IT buyers wanting pricing aligned to business value and AI vendors preferring consumption-based pricing.
- ▪Negotiating pricing for AI projects is complicated due to the experimental nature of the technology and the uncertainty of its benefits.
Opening excerpt (first ~120 words) tap to expand
Is there a good way for IT to pay for AI? Not really, but there might be some slightly less horrific ways. Credit: Rob Schultz / Shutterstock Enterprise IT leaders have always struggled with AI pricing, especially the need to pay for AI in a way that delivers ROI. But the typical IT exec may not be right person to decide how a company uses AI — and how it tries to deliver ROI — because so many line-of-business workers and partners are now experimenting with the technology on their own. And if IT leaders don’t have a grip on how they want to use AI over the next year or two, it’s impossible to figure out how they want to pay for it. They likely hate the current method of paying per token. And other options, such as SAP’s push to charge per AI task completed, aren’t any better.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Computerworld.
