Part 6/8:

The implementation of AI brings nuances to pricing structures. Traditionally, software companies leaned on a per-seat pricing model. However, AI’s ability to replace labor opens up discussions on new business models focused on output rather than input.

For example, Zendesk’s existing revenue model is based on the headcount of customer support representatives. If AI-enhanced tools can automate a significant portion of these tasks, customer companies can be incentivized to purchase software that reduces their labor needs.

This shift could potentially lead to net deflationary effects in industry pricing. Companies might find themselves charging less for services that have historically been labor-intensive, meaning AI-driven solutions could disrupt established pricing norms significantly.