Artificial intelligence is breaking the two-decade-long tradition of subscription-based pricing in the software industry. Enterprise software giants like Salesforce are shifting from fixed subscription fees based on the number of users to charging based on usage or actual business outcomes. Salesforce allows customers to choose their preferred payment model for the AI product Agentforce, including billing based on business outcomes. Following the earnings release, its stock price has surged approximately 23%. This transformation indicates that the SaaS model pioneered by Salesforce is facing challenges. As AI reduces the frequency of employee interactions with applications, the foundation for charging based on user seats no longer exists. Companies in the industry, such as OpenAI, Sierra, Fin, and Cognition, have also adopted similar outcome-based or task-completion-based pricing models. The new model explored by Salesforce is similar to Palantir's customized contracts, closely tying revenue to customer business outcomes. Additionally, Salesforce has launched Claudeforce to respond to pressure from AI-native competitors and generate revenue by allowing third-party AI to access its data. However, the outcome-based pricing model may lead to attribution disputes in practical implementation. The outcome of this transformation will determine whether established enterprise software companies can successfully reinvent themselves amid the AI wave.
