Software Providers Struggle to Find a Business Model for AI

The Wire: For all the enthusiasm around AI, businesses have yet to open their wallets in a predictable way.

Software developers and SaaS providers have a long way to go before they make notable amounts of money from AI. Among other things, there’s few obvious business models for them to run with and no clarity on AI solutions’ value.

That means software vendors aren’t sure about how to charge for products that incorporate AI. Some, like Microsoft, are adding premiums to products that offer advanced options. Customers of Office 365 pay an additional $30 per user, per month, when they include Microsoft Copilot in the mix.

Meanwhile, Adobe’s pricing now includes “generative credits,” which govern the output of images or other media in subscription plans. Other companies, like Zoom and LinkedIn, are incorporating AI into their products without additional cost.