Usage-based pricing charges for consumption, tokens, credits, resolved tasks, API calls, rather than flat seats. It dominates AI products because costs scale wi
Charging for consumption, tokens, credits, resolved tasks, API calls, rather than flat seats. It dominates AI products because costs scale with inference: pure seat pricing leaks margin under heavy use, while usage pricing aligns revenue with cost of goods.
The buyer-side challenge is predictability, which mature vendors answer with caps, alerts, and committed-use discounts. The design space also includes hybrids (base fee plus usage), credit systems, and outcome pricing that charges per resolution.