Summary: Box and Microsoft have adopted different pricing models for their generative AI features. Box offers a consumption-based model, allowing users a set number of credits per month, while Microsoft charges a fixed fee in addition to its Office 365 subscription. Experts suggest that software companies must find ways to incorporate generative AI into their products to drive real value.
In an effort to monetize their generative AI features, Box and Microsoft have chosen contrasting pricing strategies. Box introduced a consumption-based model, granting users 20 credits per month for any number of AI tasks. After that, users have access to a pool of 2,000 additional credits. If the demand exceeds this limit, customers are encouraged to discuss purchasing additional credits with a salesperson. Box CEO Aaron Levie believes that this approach allows for a fair charging system based on usage, while also accounting for the cost of utilizing the OpenAI API.
On the other hand, Microsoft has adopted a traditional pricing model for its Copilot features. In addition to the regular monthly Office 365 subscription fee, Microsoft charges $30 per user per month to access these AI capabilities. The cost of an Office 365 subscription varies for different customers.
During the Web Summit panel on generative AI’s impact on SaaS companies, Christine Spang, co-founder and CTO of Nylas, and Manny Medina, CEO of outreach platform Outreach, discussed the challenges faced by software companies while implementing generative AI. Despite the existing hype surrounding generative AI, Spang acknowledged its potential value and suggested that the key lies in integrating the technology with other systems and applications to deliver tangible benefits in various use cases.
While Box and Microsoft have taken different approaches to pricing their AI features, it is evident that both companies recognize the importance of generative AI and its potential impact on their respective industries. The success of these pricing models will ultimately depend on how effectively they can provide value to users and drive adoption of AI technology.
The source of the article is from the blog reporterosdelsur.com.mx