TL;DR:
- Box introduces a unique AI pricing model at the BoxWorks conference.
- Users receive 20 monthly credits for various AI tasks.
- Shared pool of 2,000 credits is available for exceeding users.
- Advanced users can purchase extra AI credit blocks.
- Pricing model aims to balance user accessibility and AI resource costs.
- First two Box AI features are in beta for Enterprise Plus subscribers.
Main AI News:
As the integration of generative AI into enterprise software gains momentum, businesses are grappling with the challenge of establishing a fair pricing strategy that allows them to recover the expenses associated with harnessing the capabilities of foundational large language models like OpenAI. In May, Box took a significant step by introducing Box AI through a strategic partnership with OpenAI. Today, at the BoxWorks customer conference, the company unveiled a distinctive approach to pricing its AI functionality.
Box’s groundbreaking pricing model revolves around a credit system, wherein each user is allocated 20 credits per month, applicable to a variety of AI tasks totaling up to 20 events. “Whether you’re inquiring about a document, generating content in Box Notes, or posing a query within a hub, you’ll have access to 20 queries per month,” elucidated CEO Aaron Levie.
But what happens if a user exceeds this monthly quota? In such cases, they can tap into a collective pool of 2,000 additional credits shared across the entire company. This strategic move empowers power users to continue leveraging Box’s AI capabilities without imposing any additional financial burden on the organization.
For customers who extensively utilize the AI features, Box offers the option to purchase supplementary credit blocks. Levie elaborated, “We have a shared pool of 2,000 AI credits for anyone exceeding their monthly allocation. Beyond that shared pool, companies can procure additional blocks of AI credits.” While the finer details of this mechanism are still in development, the company envisions the availability of blocks comprising 10,000 credits for purchase.
The genesis of this innovative pricing system emerged from candid discussions with customers who highlighted diverse use cases for Box’s AI features. Levie explained, “We designed a model that simplifies AI adoption for the average user while accommodating advanced power users by charging for their higher-volume usage.”
Levie acknowledged the need to strike a balance between equitable customer pricing and recognizing the underlying costs associated with running generative AI models, which can be substantial. He firmly believes that this pricing paradigm achieves that equilibrium.
Additionally, Box made the exciting announcement that the first two Box AI features, namely content creation in Box Notes and document-specific queries, will enter beta testing for customers subscribed to the Enterprise Plus plan starting next month. These customers will transition to the new pricing model as Box commences charging for these premium features.
Conclusion:
Box’s innovative AI pricing model, combining monthly credits and shared pools, ensures equitable access to AI capabilities while addressing the underlying cost challenges. This approach positions Box to cater to a broad user base and foster AI adoption, potentially setting a precedent for competitive pricing strategies in the market.
