# AI Is Upending SaaS Pricing

By [SontungMTP](https://paragraph.com/@bitfinity) · 2025-07-20

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**In this episode, a16z GP Martin Casado sits down with** [**Metronome**](https://metronome.com/) **CEO Scott Woody to unpack how AI is fundamentally changing the _value proposition_ of software — and why that shift demands a rethink of the traditional SaaS business model.**

**They explore how, in the cloud era, value scaled with the number of users accessing a shared system (think Salesforce). However, in the AI era, value shifts to the _work_ the software performs on your behalf, automating tasks such as writing code or resolving support tickets. As a result, the old value metric of “users” is being replaced by “output,” and it’s upending how companies monetize.**

**This conversation goes deep on:**

*   **What new pricing models will emerge in an AI-native world**
    
*   **Why usage-based billing is gaining ground — and where it breaks**
    
*   **How to align GTM teams and customer success orgs with evolving value metrics**
    
*   **Strategic advice for SaaS founders navigating hybrid business models and incentive design**
    

**If you’re selling software today, you don’t want to miss this discussion.**

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*Originally published on [SontungMTP](https://paragraph.com/@bitfinity/ai-is-upending-saas-pricing)*