If AI Agents Do the Work, Who Pays for the Seat? (www.linkedin.com)

The software industry is experiencing a seismic shift as AI begins to disrupt traditional seat-based pricing models prevalent in SaaS businesses. This transformation is significant for the AI/ML community, as the proliferation of AI agents—capable of executing tasks in parallel—poses challenges to the existing identity and time-based pricing structures. As organizations leverage these agents for various tasks, such as data management and team communication, the need for a new pricing paradigm emerges, fundamentally questioning how companies like Salesforce and Microsoft will charge for software usage. Companies are exploring innovative strategies to adapt to this changing landscape, moving towards consumption-based models where billing is linked to actions, API calls, and workflows, rather than individual "seats." This shift could alter the profit margins for software firms, as the economic dynamics surrounding AI usage become more complex, with many vendors now operating under a mixed model that incorporates both subscription and usage-based pricing. As industry leaders voice their concerns over adapting to these changes, the conversation highlights a critical moment for the software market, as it seeks to balance customer demand for flexibility with sustainable business practices in the face of rapidly evolving AI technology.