With the advent of AI in our era, the Software-as-a-Service (SaaS) model has undergone a major change. If you are thinking of starting a startup with SaaS, you should be aware of this change.

In the traditional SaaS model, customers access the software by paying a subscription fee. But the new AI-powered SaaS business model works as outcome-based pricing. This proves that the traditional “access, pay” method has changed.

Why are AI-powered SaaS different?
1. Outcome-Based Pricing:
This helps in reducing customers’ risk and showing more value in the software. Money is no longer paid for the use of the software, but for the “result” achieved with the software.
2. Faster Revenue Growth:
The study by Stripe demonstrates – AI-powered SaaS businesses earn up to $30 million in 10-15 months, as it takes 50-60 months for SaaS businesses.
3. Enhancing Customer Trust:
As consumers’ Total Cost of Ownership (TCO) decreases, the adoption rate increases, the real-world value of the software becomes clearer.

What can SaaS Startups do now?
• Bring attention to AI: Include AI-based features in your software. Solutions that can give users a clear value are the ones that are most needed today.
• Improve positioning: Make your brand a clear place in the market. The new AI-centric outcome-based pricing can be used as your differentiation.
• Product-led Growth (PLG) model: Guiding users should be your product itself. Tools and user experience are crucial in this.