Assumption: Pricing Model Sustainability with gen-AI operational costs
The business hypothesizes that an on-demand and subscription pricing strategy can sustain AI model operational costs, with less than 50 user requests per month and per subscribed user. Testing reveals that despite some cost per creation, the model is potentially profitable, with a sustainable profit margin achievable with an increased subscription fee. Insights lead to a pivotal decision: to either adjust prices or develop proprietary models to mitigate running expenses and improve profit margins.
