Software Giants Want AI to Boost Profits. Customers Aren't Ready to Pay Up
For years, enterprise software had a pretty straightforward business model. Companies paid for each employee using the product, and the bill stayed relatively predictable. AI is changing that arrangement, with software vendors introducing credits, usage fees, and pricier subscription tiers.
The problem? Customers want the new features without signing up for a bill they can't predict. Salesforce, ServiceNow, and HubSpot are approaching that problem differently, and the results could change how investors value software companies.
Salesforce puts AI on the bill
Salesforce has introduced Core, Advanced, and Max subscription tiers that include AI features and Flex Credits. Rather than charging separately for every AI tool, the company is building those capabilities into its packages while giving customers allowances to spend.
But those allowances come with a catch. Analysts warn that the included credits may be enough to test AI, but not necessarily to use it across an entire business. One data-unification task could reportedly exhaust a year's allowance.
ServiceNow is making a similar bet by incorporating AI into its existing product packages. That approach could make AI a standard part of customer subscriptions, although higher renewal costs are already causing friction.
One customer reportedly received a renewal quote 50% to 100% above its previous contract, a figure ServiceNow disputes. Still, the disagreement illustrates why customers want to understand what they're paying for before accepting a larger bill.
HubSpot takes another approach
HubSpot is trying to make AI spending easier to manage. On October 15, it announced new controls that let customers set limits, adjust their subscriptions, and choose how they pay for additional usage.
Default account-level credit limits can extend up to 50% beyond monthly allowances. Customers can also exchange unused seats for credits during an existing contract rather than waiting until renewal.
Businesses can limit spending on individual AI features and choose between monthly credit packages and pay-as-you-go billing. That gives customers more control over their bills without requiring them to abandon the tools.
The announcement builds on HubSpot's earlier move to outcome-based pricing for its Customer and Prospecting agents. Instead of paying simply to use the technology, customers are charged when the agent completes the work.
How Software Vendors Are Pricing AI
| Company | Model | Spend control |
|---|---|---|
| Salesforce | Core, Advanced, Max tiers with Flex Credits | No cap on overage |
| ServiceNow | AI bundled into packages | Legacy plans still renewable |
| HubSpot | Credits plus outcome-based agents | Default cap up to 50% above monthly credits |
The price of getting customers on board
The three companies are trying to solve the same problem from different directions. Salesforce and ServiceNow are making AI part of their existing subscriptions, while HubSpot is giving customers more ways to control what they spend.
For businesses, the appeal of AI can quickly fade if the bill becomes difficult to forecast. Included credits may make the initial purchase easier, but customers still need to know what happens when those allowances run out.
That's where hybrid pricing comes in. Combining a subscription with usage-based charges gives vendors another source of revenue while allowing customers to see how additional activity affects their bills.
Higher-priced tiers offer another option, although the ServiceNow renewal dispute shows why increasing subscription costs isn't necessarily an easy sell.
What investors should watch
For software investors, the question is whether these pricing changes can turn AI features into lasting revenue without making customers rethink their contracts.
Spending caps offer reassurance to buyers, but they can also limit how much vendors collect from heavy users. Outcome-based pricing introduces another trade-off because companies receive payment when their AI tools deliver the agreed result.
That makes gross margins worth watching alongside revenue growth. Investors need to see whether higher AI-related sales translate into stronger profits, rather than assuming every additional dollar carries the economics of a traditional software subscription.
The next test will come when customers renew their contracts. Software companies want AI to justify bigger bills, but they'll have to convince businesses that the extra cost is worth paying.
