6 articles tagged Unit Economics

Engineering teams spend more on AI tokens than junior salaries. The cost structure of building software has inverted and most finance teams missed it.

Per-seat pricing is dying but the replacement is not simple. A practical framework for AI pricing that covers usage-based, outcome-based, and hybrid models.

4 engineers, 10 days, a new product line. AI coding agents collapsed build economics. If code is a commodity, your moat is data, integrations, and trust.

If your AI roadmap succeeds, customers need fewer seats and you earn less revenue. The fix: price around the units of work completed, not user logins.

A manager model checking every worker output increases unit cost by 2,500%. The fix: a spot-check architecture that can save 75% of your token margin.

AI is not a feature, it is a new compute paradigm. Bolting GenAI onto legacy platforms destroys unit economics. If the AI is optional, it's a gimmick.