Tag: pricing
Good-enough AI will eat the premium-model business
Good-enough AI is driving commoditization from below. Stanford HAI clocked a 280-fold drop in the cost of running a GPT-3.5-level model. Once a cheaper model clears the bar for a job, the frontier model stops earning its premium for that job.
AI contract negotiation - why flexibility beats price
85 percent of companies miss their AI cost forecasts by more than 10 percent, and the cheapest AI contract often becomes the most expensive. Flexible terms around usage scaling, data portability, and exit rights matter more than base pricing. What Michael Porter called switching costs are the real danger in AI vendor lock-in.