Fynn GloverCo-Founder & CEO, Schematic · Co-founder & CEO of Schematic | Runtime monetization infrastructure for SaaS & AI companies

James Wood, Head of Product at M3ter, on pricing AI products

1 Jan 2025 · 1 min

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In this brief discussion, James Wood argues that the fundamentals of pricing and packaging AI products have not changed; they should be approached similarly to traditional SaaS models, often using seat‑based pricing, while also considering infrastructure‑style cost components akin to cloud computing. He emphasizes that AI introduces new challenges that act as a reset point, urging companies to reassess their pricing and packaging strategies to account for the multiple components AI brings. Failing to do so, he warns, likely means a flawed pricing approach.

Chapters

I feel, and there's plenty of things going around about like different AI models, what's the right AI model, all that kind of thing. I really feel like it just brings, like the principles haven't changed in pricing and packaging. Like the way to think about pricing AI is the way that you would have thought about pricing standard SaaS, maybe even kind of like things that lie together better, seat-based. I think the The thing is that it forces you to rethink all of those things again. And maybe the right, the right comparative is like more infrastructure-based things like cloud computing, all that kind of stuff, like factoring in the cost component as well. But I think it, what it does is definitely brings around a few different challenges and will probably be a bit of a reset point. Like if you aren't at least reassessing your pricing and packaging in light of AI, you're probably doing it wrong because there are so many different components.