Generative AI has moved fast. Once a niche innovation, it’s now everywhere in B2B SaaS. Every provider is rolling out some kind of AI-powered feature, investors are pouring money into AI startups, and enterprise customers expect AI as part of the package. 

But here’s the reality. Most SaaS providers are struggling to turn AI into real revenue. The problem? Customers demand AI, but they don’t want to pay extra for it. 

So what if direct monetization isn’t the real opportunity? 

The AI Monetization Paradox: More Adoption, Less Revenue 

The numbers tell the story: 

  • 77%1 of SaaS companies have already launched or planned AI capabilities. 
  • Enterprise buyers increasingly see AI features as standard, not premium. 
  • Yet only 15%2 of SaaS companies have successfully monetized AI, according to the OpenView 2023 SaaS Benchmarks. 

This presents a serious challenge. AI is expensive to build and maintain, but customers won’t pay extra for features they now expect as part of the core product. 

Why Direct AI Monetization is Overrated 

Although most SaaS companies include AI features for free, some still treat them as an upsell by bundling them into higher pricing tiers, adding a premium price tag, and hoping customers will pay. But this approach is flawed. 

1. AI is quickly becoming a necessity, not a luxury. 
  • Customers see AI as an essential tool, much like analytics or automation. 
  • If your competitors offer AI-powered features for free, why should your customers pay extra? 
2. The biggest AI ROI isn’t always revenue. It’s retention and efficiency. 
  • The best SaaS companies use AI to lower churn, increase stickiness, and reduce operational costs. 
  • Instead of monetizing AI directly, they let it drive higher lifetime value. 

Take HubSpot as an example. They’ve embedded AI into their CRM, not as an add-on but as a core part of the experience. That makes the platform more indispensable without requiring customers to justify an extra fee. 

3. Investors are watching closely. 
  • Public SaaS companies with unclear AI strategies are getting penalized in valuations. 
  • AI isn’t just another product enhancement. It’s a fundamental shift in how software companies compete. 
  • Those who fail to embed AI deeply into their business model will struggle to remain relevant. 
Bill McDermott, CEO of ServiceNow, puts it clearly: 
"We view ServiceNow as the control tower for AI business transformation, integrating AI seamlessly with existing systems to drive innovation and efficiency."

AI isn’t an add-on. It’s the foundation for competitive advantage. 

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How the Best SaaS Companies Win with AI 

1. Position AI as a Competitive Moat, Not a Price Bump 
  • Microsoft and Salesforce charge for AI because they’ve tied it directly to business impact. 
  • For most SaaS firms, the real play is driving retention and competitive advantage first, then monetization. 
  • Instead of asking, “How do we charge for AI?” ask, “How do we make AI indispensable?” 
2. Move Beyond Per-User Pricing: Use Outcome-Based Models 

AI pricing should be tied to clear business value, not just a flat fee. 

  • Gong prices its AI-driven sales insights based on deal closure rates. 
  • Jasper charges based on content generated, not seats sold. 
  • Aligning pricing with results makes it much easier for customers to justify the spend. 
3. Measure More Than Just Revenue: The AI Monetization Index 

If AI isn’t directly driving revenue, how do you measure its impact? 

A smarter way to track AI ROI is to look at three core areas: 

  • Revenue Uplift – Does AI lead to better pricing power or increased upgrades? 
  • Retention Impact – Do AI-powered customers renew at a higher rate? 
  • Efficiency Gains – Does AI reduce operational costs or improve team productivity? 

Companies that track these metrics, not just direct AI revenue, will have a clearer picture of AI’s real value. 

4. Address AI Trust, Ethics, and Compliance Early 

AI is not just about functionality; it’s about trust. Customers are becoming more cautious about data privacy, AI bias, and ethical concerns. 

  • Companies like Adobe and Zoom now proactively address AI transparency in their messaging. 
  • Those who fail to build trust upfront risk losing enterprise deals before they even start. 

The Bottom Line: AI Is Not Optional, But Monetization Requires a Strategic Shift 

SaaS leaders need to stop thinking of AI as just another upsell. The real opportunity isn’t in charging for AI. It’s in using AI to transform the customer experience, reduce churn, and create operational leverage. 

  • Companies that embed AI into their business model will drive real value. 
  • Those who treat it as just another premium feature risk being left behind. 

So if you’re still asking, “How can we charge for AI?” you’re asking the wrong question. 

The real question is: 
“How can AI redefine our core business model to drive lasting competitive advantage?” 

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