Generative AI is driving a shift in SaaS businesses towards usage-based monetization models. This AI-facilitated change is not just affecting pricing but also business models. Usage-based pricing aligns the costs and revenues of SaaS applications and encourages operational efficiency. Examples of companies embracing this model include Stripe and Instacart, which have integrated with OpenAI’s GPT-4, and Adobe, which has launched Adobe Firefly. It’s recommended that SaaS companies meter frontend usage and backend resource consumption, track usage and account health, and integrate usage data with their existing customer relationship tools.
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