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How to price your product or service in the era of generative AI?

If you’ve been following traditional value-driven or cost-driven pricing methods, incorporating generative AI into your pricing strategy presents a whole new set of opportunities and challenges.

By using the power of generative AI, businesses can develop creative and personalized products or services that perfectly match their customers’ specific needs and preferences. This improved value proposition brings opportunities for new and exciting revenue streams.

Moreover, generative AI can transform your cost structure by simplifying and automating intricate tasks, leading to substantial savings in time and resources. By accurately evaluating these cost reductions, you can boost your profitability while staying competitive in the market.

Recently, the CEO of a leading India-based SaaS company made waves by announcing their adoption of generative AI for their software product development. According to this CEO, incorporating ChatGPT has dramatically reduced coding time from around 9 weeks to just a few days. It remains to be seen how this decision will impact the pricing of their product.

As this AI revolution continues, businesses must analyze how generative AI affects their pricing strategies. They must find the right balance that combines the value they provide with their unique offerings and the cost savings gained through automation.

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