{
  "id": 15725401,
  "title": "Why AI is upending traditional technology pricing",
  "url": "https://urgent.news/2026/10/20/why-ai-is-upending-traditional-technology-pricing",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-20T08:42:30.000Z",
  "source": {
    "name": "TechRadar",
    "slug": "techradar",
    "url": "https://www.techradar.com/pro/why-ai-is-upending-traditional-technology-pricing"
  },
  "original_language": "en",
  "account": "Artificial intelligence is disrupting the way traditional technology services are priced. The old model based on hours worked equating to higher costs and value is being challenged by AI's ability to reduce effort and increase value. Managed service providers are grappling with how to price their services when the traditional effort-cost-value relationship no longer holds. Enterprises are also facing similar pricing challenges on a larger scale as AI enables self-healing operations. The problems lie in identifying the right AI use cases and redesigning operations around what AI can achieve. There is no single pricing model that fits all situations. Outcome-based, consumption-based, and AI-enabled pricing each have their advantages and trade-offs. The key is creating enough flexibility to adapt when effort, cost, and demand no longer move predictably. Hybrid models that combine a predictable base fee with variable components tied to AI consumption and outcome-based incentives show promise as the preferred commercial model for AI-enabled managed services.",
  "summary": "AI is breaking the link between effort, cost and value that technology services have relied on for decades.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}