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Software groups dismiss price premium for generative AI

Adobe, Salesforce and Zoom have for now ruled out following Microsoft’s lead despite extra costs

Top US software companies, such as Adobe, Salesforce and Zoom, have for now ruled out charging extra for the use of generative artificial intelligence, leaving the industry without an immediate revenue pick-up from one of the most significant technology shifts in years.

The pricing decisions have emerged in recent days as the groups have released new AI features in a number of widely used software applications, making it a part of everyday life for millions of workers.

The lack of an AI price premium shows that most tech companies remain uncertain about how valuable customers will find the technology, according to analysts. “It is still so new, nobody quite knows how to price this,” said Wayne Kurtzman, an analyst at tech research firm IDC. “Nobody knows what consumption is going to be. They don’t know where value will be perceived.”

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