07 January 2024

Navigating Pricing Models in the Generative AI Landscape

Exploring how companies like Box and Microsoft are adapting pricing models for their generative AI features and the implications for the SaaS industry.

Market Analysis

Exploring the complexities of pricing models for generative AI features, this article delves into Box's unique consumption-based model and compares it with Microsoft's traditional pricing approach. It also highlights the perspectives of industry leaders at a Web Summit panel on the integration of generative AI into SaaS products.

Innovative Pricing by Box

Box has introduced a new consumption-based pricing strategy for its generative AI features, offering users monthly credits tied to usage, and facilitating a balanced allocation of resources by taking into account diverse customer needs and the costs associated with OpenAI's API.

Microsoft's Traditional Model

Microsoft stays with a more conventional pricing scheme for its Copilot features, requiring a set per-user monthly fee in addition to the standard Office 365 subscription rate, reflecting the varied approaches to monetizing AI capabilities.

generative AI, pricing models, SaaS, Box, Microsoft, enterprise software, AI features, OpenAI, Office 365, Copilot features

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