Why AI is upending traditional technology pricing
You don't need to understand the mechanics of AI tools to understand what's happening to traditional technology pricing. AI is breaking the link between effort, cost and value that technology services have relied on for decades.
Imagine two managed service providers responding to the same production incident. One assigns an engineer who spends five hours tracing logs, checking dependencies and isolating the root cause.
The other uses AI-enabled observability to identify the issue in minutes, trigger the appropriate remediation and restore service before users notice. The second provider used fewer hours but delivered more value. Should they be paid less?
Senior Vice-President, Global Business Engineering, CGI.
Enterprise technology services are running into the same pricing challenge, but on a larger scale. The old pricing model equated more hours with higher cost and, in theory, greater value. But today, AI is enabling organizations to move from reactive support to self-healing operations....
Copyright of this story solely belongs to www.techradar.com. To see the full text click HERE
