Generative AI is attracting a lot of interest as an innovation platform. How will generative AI be used to create value? How will that value be priced?

We have entered an AI renaissance. What flavours of AI will have the biggest impact on pricing over the next three years? Here are the top three candidates: predictive analytics, computational game theory, large language models.

SaaS pricing is sometimes described as data driven. It is actually model driven, with data being the raw material used to build and adapt the models. It is the interaction of three models that guides pricing. The value model, the cost model and of course the pricing model itself.

Digital transformation requires digital pricing. Digital pricing is model based, data driven and adaptive. Digital transformation will not be transformative if it is not based on value.