In this episode of Generation AI, hosts JC Bonilla and Ardis Kadiu explore the complex world of business models for artificial intelligence products and services. They discuss recent developments with Google and OpenAI, and break down the various pricing strategies being employed, from free access to premium subscriptions. Ardis shares insights from his experience building AI into Element's higher ed CRM platform. The conversation covers key considerations for monetizing AI, including understanding customer needs, value creation, and strategic pricing. JC outlines eight potential business models, from "AI-first" paradigms to open source approaches. This episode is a must-listen for anyone looking to understand the financial side of the AI revolution.Introduction (00:00:00)JC opens the episode and introduces the topic of AI business modelsArdis comments on JC's hosting skillsGoogle and OpenAI News (00:02:13)OpenAI makes ChatGPT accessible without an accountDiscussion of OpenAI's motivations and competition with GoogleGoogle introduces generative search and the changing user behaviorComparison of Google and OpenAI's business modelsBusiness Model Fundamentals (00:07:27)Three key aspects: customer needs, value creation, pricingHow Ardis approached the business model for ElementBalancing cost and differentiators in pricingMacro Forces in Business Models (00:10:21)Subscription pricing, consumption pricing, and embedded pricingHow Element approaches pricing for its AI featuresComparison to other AI-powered business toolsAI Business Models in the CRM Space (00:14:17)Impact of generative AI on SaaS pricingMicrosoft Copilot, Google Gemini, Salesforce Einstein pricingElement's approach to embedding AI without additional costsEight AI Business Models (00:17:14)"AI-First" Paradigm: Embracing AI as a core ventureSubscription Model: AI as a service with scalable pricingFeedback Loop Model: Personalization improves with usageEcosystem Model: Interconnected solutions and diversified revenueGlobal Solutions, Local Partners: Transfer learning across regionsOpen Source Models: Community collaboration and customizationUncharted Territories: Adapting and evolving models like SlackElement's AI Strategy (00:42:45)Building AI into the platform and figuring out monetizationAligning technology costs with delivered value over timeExcitement for upcoming developments and need for more discussionConclusion (00:44:39)Recap of the eight business model variations discussedCall to action for listeners to consider AI pricing from both consumer and business perspectivesArdis signs off and plugs the Enrollify podcast network
- - - -Connect With Our Co-Hosts:Ardis Kadiuhttps://www.linkedin.com/in/ardis/https://twitter.com/ardisDr. JC Bonillahttps://www.linkedin.com/in/jcbonilla/https://twitter.com/jbonillxAbout The Enrollify Podcast Network:Generation AI is a part of the Enrollify Podcast Network. If you like this podcast, chances are you’ll like other Enrollify shows too! Enrollify is made possible by Element451 — The AI Workforce Platform for Higher Ed. Learn more at element451.com.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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