Prediction certainty 3/5 debate potential 3/5

AI reasoning capabilities will force software pricing from seats to value-based usage

Mike Murchison · AI-First Customer Service Playbook: Ada CEO Mike Murchison on Building Scalable Support with Gen AI · Jul 26, 2023 · at 30:16

Mike Murchison, CEO of customer service AI platform Ada, discusses how LLM capabilities will transform software business models beyond customer service.

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“I actually think this is, this will be true for all of software. I think that the, because of the quality of large language models, reasoning capabilities specifically, I think we're going to see a major shift Not only away from seat-based pricing towards usage-based pricing, but actually on a very particular value-based type of usage pricing where software vendors are only going to increasingly charge for the value that they're actually creating.”

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More from Mike Murchison

Assertion Not checkable as stated
Ada uses runtime guardrails to prevent inaccurate AI responses entirely
“Increasingly, we make those assurances in runtime, so it's actually not possible for ADA to deliver an inaccurate response.”
Mike Murchison Feb 13, 2025 ▶ 23:52 Farewell, Chatbots: AI Agents Are Taking Over Customer Service | Mike Murchison, CEO, Ada
Assertion Not checkable as stated
Ada's AI agents resolve up to 85% of customer service conversations autonomously
“Our agents are now autonomously resolving. We have a new high watermark as of last week, week before, 85% of all conversations that, up to 85% that they're seeing. That's without human involvement”
Mike Murchison Feb 13, 2025 ▶ 19:26 Farewell, Chatbots: AI Agents Are Taking Over Customer Service | Mike Murchison, CEO, Ada
Assertion Not checkable as stated
Ada measures customer conversation quality as accurately as humans across 100% of interactions
“And we can say with confidence right now that yes, that is exactly true. We can measure the quality of a conversation transcript as well as a human annotator. And we can do it with a hundred percent coverage.”
Mike Murchison Feb 13, 2025 ▶ 28:37 Farewell, Chatbots: AI Agents Are Taking Over Customer Service | Mike Murchison, CEO, Ada
Prediction Not checkable as stated
Murchison: AI agents will soon face zero technical action limitations
“I think we're very soon going to be in a position where there's really no action that a, that, that ADA can't perform on behalf of a customer. And the limiting factor will be whether or not the business wants that action to be automated.”
Mike Murchison Feb 13, 2025 ▶ 31:40 Farewell, Chatbots: AI Agents Are Taking Over Customer Service | Mike Murchison, CEO, Ada
Prediction Not checkable as stated
Unified customer-facing AI will soon outcompete humans in sales and support
“There will just be a single customer-facing AI that most businesses deploy, and that AI will not only serve as well or better than a human, but it will sell as well or better than a human too.”
Mike Murchison Feb 13, 2025 ▶ 48:13 Farewell, Chatbots: AI Agents Are Taking Over Customer Service | Mike Murchison, CEO, Ada
Insight
Murchison: Ada added artificial email delays because instant AI replies had lower open rates
“So, like, you know, the, in other words, like, customers weren't opening these emails because they didn't believe that the email could be helpful if it came so instantly, right? So it was like an eight-minute delay that a lot of our customers use.”
Mike Murchison Feb 13, 2025 ▶ 1:02:10 Farewell, Chatbots: AI Agents Are Taking Over Customer Service | Mike Murchison, CEO, Ada
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