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The Economic Times
The Economic Times

How AI Is transforming SaaS pricing and shifting enterprise spending to labor budgets

For the last two decades, SaaS companies mostly competed for software budgets. Pricing was built around seats, modules, editions, and renewals because the human user was the best proxy for value. More users usually meant more workflows, more collaboration, more data inside the system, and more willingness to pay. AI changes that assumption.

When software can resolve a customer issue, process an invoice, qualify a lead, or review a contract with less human involvement, the seat becomes an incomplete proxy for value. The question is no longer just “how many employees need access?” It is “how much work can the system actually do?” That is the real pricing reset AI is bringing to SaaS.

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