AI Features: Should They Be Core or Add-On?

Sandhya from unusual.vc breaks down when to bundle AI features into your core product versus selling them separately. If 60-70% of users adopt a feature, make it core and raise your base price. If only 20% use it, like Notion's AI add-on, keep it separate.
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So if you look at, you know, whether you should choose like an add-on package or include it in the core package, it's just a question of adoption. If the majority of your existing user base wants the AI feature, is adopting the AI feature, you include it in your core package. It's like if, you know, over 60-70% of your existing users want your AI features, you just make it a part of your core packaging. And hopefully they find it valuable so you can actually increase the price of the core package, right? However, if only 20% of your users are interested in your new AI launch, you make it an add-on. You know, this is, for example, this is a table from Lenny's newsletter. I have a link for it in the text below. You should check that out. But yeah, essentially you can see this example where, you know, Notion has just made it a little add-on. And I think that's safe. Say something about the level of adoption versus someone like Intercom who's made it a part of the core package. So I would essentially wrap up at this point. Important things to remember are as follows, right? Which is pricing, packaging is full company strategy. Don't think about it as ASP. We need to figure out how to— what price point to sell it at. Think about it as like, how do we price and package to make this the biggest, best possible company? Most people are using hybrid, so don't shy away from it. And think about what your customers want predictability around. Do they need predictable cost? Do they need predictable success? And last but not the least, make sure that it's aligned to your product workflows and what your customers want to buy and use together. So I don't think we have— we are doing Q&A, so I will wrap up here, but I'm Sandhya at unusual.vc, Sandhya on Twitter. Happy to chat more about pricing and packaging in AI.
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