Tech Executives: AI Has Changed SaaS Forever (Don't Fall Behind)

The discussion centers on the evolution and strategic implications of usage-based billing, particularly in the context of AI and SaaS businesses. It highlights how AI is shifting software value from user count to the actual work performed, necessitating new commercial models. The limitations of traditional seat-based subscriptions and the rise of hybrid models, combining per-user fees with variable costs, are explored. Challenges in implementing usage-based billing, such as real-time data processing, dynamic pricing, and data scale, are addressed. For companies considering this model, key considerations include aligning sales compensation, integrating product and engineering with core value metrics, and ensuring finance teams can provide strategic data insights rapidly. The conversation emphasizes that agility and a willingness to experiment are crucial in the current dynamic market.