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How do you price a new AI capability added to an existing product without it feeling like a tax on current customers?

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  1. Bhavika Thakkar
    Bhavika Thakkar

    Microsoft Sr. Director of Product Marketing & Growth- Copilot | Formerly Adobe, GoDaddy, Xero • 1mo

    Great question- even the best AI tools started with a freemium model with subscription to capture large share of users, then created premium tiers, then expanded to credit based consumption model. the answer is- do you have the capacity to absorb large COGS? if not, then you want to think of consumption based pricing vs. subscription based or at least combo of both. If yes, then- start with a low price point or even give away some turns for free in your existing plan to drive habitual usage and ...Read More

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