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Revenue Builders Podcast
Using AI in Consumption Pricing Models

Using AI in Consumption Pricing Models

Revenue Builders vor 1 Jahr

0:00

6:02

In this short segment of the Revenue Builders Podcast, John
McMahon and John Kaplan are joined by Devavret Shah, an MIT
professor, data expert, and CEO of Ikigai Labs, to explore how AI
is revolutionizing consumption-based pricing models and
forecasting. Devavret delves into the challenges of predicting
demand, the role of AI in empowering sales teams and CFOs, and
how artificial intelligence can enhance trust and accuracy in
revenue prediction. This engaging discussion also highlights how
businesses can leverage AI to enable seamless decision-making and
gain a competitive edge.

KEY TAKEAWAYS

[00:00:28] Understanding Consumption-Based Pricing Models:
Consumption models focus on token-based API calls, offering a
modern alternative to traditional SaaS pricing.

[00:01:58] Data as a Predictive Framework: Viewing data as a
massive queue allows organizations to forecast compute volumes
and future revenues with more accuracy.

[00:03:23] Challenges in Forecasting: Smooth macro-forecasting
often clashes with micro-forecasting, such as predicting
localized or choppy demand.

[00:04:14]AI's Role in Cohort Analysis: Leveraging AI to analyze
sales reps and channels as cohorts improves prediction accuracy
and fosters trust within organizations.

[00:05:16] Aggregating Complex Parameters: AI simplifies the
aggregation of historical, seasonal, and booking data to deliver
actionable insights for consumption forecasting.

QUOTES

[00:01:58] "Each forecasted data point is like a prediction
query—it shows the volume of compute you're doing."

[00:03:23] "It's like forecasting smooth water versus forecasting
when umbrellas are purchased—two very different problems."

[00:04:36] "AI helps organizations work with more trust, rather
than more finger-pointing."

[00:05:39] "I almost feel like it's not possible without AI to
effectively forecast the consumption business."

Listen to the full conversation with Devavret Shah
through the link below.

https://revenue-builders.simplecast.com/episodes/cutting-through-the-noise-understanding-ai-through-history-and-practical-application

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Hosted by five-time CRO John McMahon and Force Management
Co-Founder John Kaplan, the Revenue Builders podcast goes behind
the scenes with the sales leaders who have been there, done that,
and seen the results.

This show is brought to you by Force Management. We help
companies improve sales performance, executing their growth
strategy at the point of sale.

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