Bilkowski: AI features introduce significant variable costs to traditional SaaS economics
Dan Bilkowski · Value Lives in the Mind of the Customer, Not in Your Product · Oct 21, 2025 · at 0:51
Pricing strategist Dan Bilkowski explains to Sean Weisbrot why AI pricing diverges fundamentally from traditional zero-marginal-cost SaaS models.
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“For the longest time, the incremental cost of serving an additional customer has been net negligible, effectively zero for AWS storage network and compute. And so now companies, as they're building in AI enabled capabilities into their platforms are seeing significant variable cost in serving those capabilities, and that money's going out the door to foundation model providers, etc.”
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