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The Economic Times
The Economic Times
Technology
Shristi Achar

EXPLAINED: Margin pressures lurk below ai pricing play | Vintage Vibes

IT companies using artificial intelligence models at scale are likely to benefit as AI firms move from the per-seat to usage-based model of pricing, though they may face some near-term margin concerns, industry experts said.

Demand for productivity tools such as Anthropic’s Claude Enterprise and GitHub has increased over the past year. The higher demand increases inference or compute cost for AI firms, which say it is not sustainable in the long run for them to absorb this. To address this issue, Anthropic and GitHub have moved from fixed price to consumption-based models.

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