At Sierra, we help companies build customer-facing AI agents, which represent their brand and enhance customer experience.

The pricing model for AI services is evolving; companies might pay for successful outcomes, qualified leads, or resource utilization, reflecting a shift in how value is perceived in AI-driven businesses.

There are four pricing models for AI: activity-based, workflow-based, outcome-based, and agent-based pricing.

Value-based pricing is common in AI applications, where vendors charge based on the perceived savings or value they provide to customers, rather than just margins.

The mission behind Paid is to provide AI companies with the tools they need to manage pricing and understand their business fundamentals better, as traditional SaaS pricing models don't work for AI businesses, which require new approaches like outcome-based and agent-based pricing.

Charging by activity and changing pricing based on workflows are effective strategies for AI companies, moving towards value-based pricing rather than cost-based pricing.

Agent-based pricing allows companies to charge based on the work done by AI agents, which can replace a significant portion of traditional sales development roles.

Pricing strategies for AI agents can vary; if the service is used by humans, it may follow a per-user pricing model, while machine-to-machine services might adopt usage-based pricing.

AI can facilitate bespoke contracts that align with customer value, moving away from rigid pricing models and allowing for more tailored agreements, which are essential for AI companies to effectively manage pricing and value delivery.