What It Means: A Forrester Podcast AI Pricing, Outcome-Based Pricing, Developer Productivity
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Aug 7, 2025 Stephanie Liu, a Senior Analyst at Forrester specializing in AI pricing, and Andrew Cornwall, also a Senior Analyst at Forrester, dive into fascinating trends in pricing strategies. Liu discusses the implications of AI pricing versus controversial surveillance pricing, urging for transparency in consumer data use. Cornwall shares insights from a METR study on AI's impact on developer productivity, revealing the complexities in measuring productivity and how perceptions differ among developers. Together, they explore innovative pricing models that align with customer value.
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AI vs Surveillance Pricing
- AI pricing uses algorithms to impact prices based on market conditions, like airfare timing and availability.
- Surveillance pricing personalizes prices using individual data, which raises ethical concerns about fairness and transparency.
Personalized AI Pricing Backlash
- Using individual consumer data for AI pricing has sparked consumer and legislative backlash, exemplified by Delta Airlines' earnings call incident.
- Despite denials, concerns about privacy and fairness in AI-driven personalized pricing remain high.
Be Ethical with AI Pricing
- Brands using AI pricing should carefully consider the data used to set prices, avoiding exploitative personal context.
- Transparency about data and pricing methods helps align with customer expectations and reduces reputational risks.