Choosing The Right AI Business Model
After several AI projects with startups, I realized that one aspect of the AI disruption remains relatively unexamined: the right business model for AI companies.
Will the product be sold as a service or as a new feature category for users? Mentioning the type of revenue is an important part of any AI project.
Due to the many technical elements related to AI, I have noticed that existing traditional business models don’t always apply.
Business model: a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.
One might assume that AI startups, like cloud / SaaS companies before them, share a common business model. However, I noticed that it is difficult to apply the SaaS model to AI startups.
Indeed, depending on the nature of your AI solution, you’ll always need data, vast amounts of raw computing power and algorithms. It’s inherently more complex for customers to digest than cloud startups and it also requires different things, so the technology has to be sold in different ways, too.
Before getting into AI business models, I believe it is important to present the AI landscape based on my experience.
