Ibbaka Unveils Pioneering Insights in AI Monetization with the Release of 2024 Research Report
VANCOUVER, BC, Jan. 4, 2024 /PRNewswire-PRWeb/
Ibbaka Performance Inc. ("Ibbaka"), a leading authority in SaaS price optimization, proudly announces the launch of its highly anticipated "AI Monetization 2024 Research Report," a comprehensive exploration into the transformative landscape of artificial intelligence in the B2B SaaS industry.
According to OpenView's 2023 SaaS benchmarks report, 46% of SaaS companies launched AI features in 2023 and another 31% are actively building or testing AI features. In other words, more than 3 out of 4 SaaS companies have had or currently have AI R&D initiatives. However, only 15% have worked out how to monetize this new functionality.
Research conducted in November 2023 by Ibbaka, with more than 300 SaaS companies across a wide range of industry verticals found that there are four basic approaches to AI monetization.
Cautious Incrementalists, 43%, are focused on retention and customer satisfaction. This is an indirect approach and AI is being packaged in existing solutions with no explicit price increases.
Optimistic Incrementalists, 25%, are adding AI to existing products and monetizing through price increases.
Disruptors, 19%, are introducing completely new products and increasingly replacing existing products with new versions.
New Paradigm (Category Creators), 13%, are bringing new platforms to market and creating new categories; the focus in 2024 will be on defining value.
"Adding AI isn't enough to stand out as an outlier. You have to actually monetize the AI features you do add. 77% of SaaS companies we surveyed had either launched AI features or have AI on their product road-map in 2023. But only 15% have actually monetized AI." - OpenView 2023 SaaS Benchmarks
The leading industry verticals adopting AI-based solutions are Data Management, where 40% of companies are investing 100% of R&D into AI; Industrial Internet of Things, where 16% of companies are investing 100%, 23% are investing 51-80%, and 38% are investing 50-50%; Supply Chain and Logistics, where 39% are investing 40-50%; Fin-Tech where 27% are investing 40-50% and 27% are investing 20--39%; and Environmental, where 37% are investing 40-50%.
Several industry verticals are diverging, with some companies investing heavily in AI and others resisting the trend. These included Developer Tools, FinTech, and MarTech.
The research leads to three core recommendations: AI remains in its early stages of development and continues to evolve rapidly. It is essential to create space for exploration; focus on the value AI can create, and how to capture that value in pricing; consider repackaging your functionality and building on top of an AI platform.
The full report can be accessed on the Ibbaka website using this link: Ibbaka's AI Monetization 2024 Research Report
About Ibbaka
Ibbaka helps SaaS businesses in optimizing their packaging and pricing strategies to meet or exceed key SaaS metrics. This is achieved through our pricing optimization and value management platform, Valio, along with supporting data and services. Our AI-driven approach involves developing value models and deriving pricing structures based on the value a company delivers to its customers. Ibbaka provides sustainable and adaptive pricing strategies that play a crucial role in shaping markets and creating new categories.
Visit Ibbaka for more information on the AI Monetization 2024 Research Report and other industry insights.
Media Contact:
Liam Hannaford
+1 778 898 1483
