Why usage-based pricing will define the agentic AI era

The rise of generative AI and agentic AI is rapidly changing how enterprises think about software pricing, value, and long-term technology investments. While market sentiment has recently pressured valuations across software and tech services firms, I believe much of the underlying thesis is misunderstood. The real story is not wholesale disruption, but a gradual yet profound shift in pricing power, delivery models, and how value is measured.

The Overstated Threat of Software Replacement

A central concern among investors is that AI makes it easier to build software, and therefore existing platforms will be replaced.