Zendesk is introducing a new pricing structure for customers looking for greater flexibility when using the customer experience platform’s artificial intelligence tools. With “AI Dynamic Pricing,” companies can shift how they allocate their budget between agent seats and automated resolutions. Any adjustments can be made seamlessly without needing to renegotiate contracts with Zendesk.
In August, Zendesk revamped its pricing structure to align with the AI era, introducing an outcome-based model where customers are charged only when the AI agent provides real value to the end user. The company says AI Dynamic Pricing does not replace it. “The flexible pricing is more of an approach for Zendesk customers to re-allocate their spend between agents and usage billing,” a spokesperson tells me. “Customers will subscribe to outcome-based pricing, which includes seats [and] automated resolutions; the AI Dynamic option allows for that customer to remix between Seats and [automated resolutions] based on need.”
Flexibility in AI Pricing
AI Dynamic Pricing is the latest effort by tech companies to bring more transparency and clarity to organizations utilizing AI services. It’s one of many different approaches vendors are taking. Salesforce, for example, charges $2 per conversation for its Agentforce platform, while Intercom charges $0.99. Others will charge by usage (e.g., Microsoft), the input/output token (e.g., OpenAI), when a specific task is completed (e.g., Zapier), or using a credit-based option (e.g., Unify, Copy AI, Relay, Imagen, Evoto, etc.).
“In just a few years, there will be a massive shift in the amount of service that is automated—we predict 100 percent of interactions will involve AI,” Zendesk Chief Executive Tomm Eggemeier remarks in a statement. “With this in mind, we want to give our customers the freedom and flexibility to adopt AI and automation at a pace that best suits their business needs. The new pricing model allows our customers to adjust as they learn and refine their approach to service without being constrained to one setup.”
How it works: A customer subscribes to an agreement with Zendesk. That contract includes outcome-based pricing for automated responses. The customer can then elect AI Dynamic pricing to “remix during the contract period versus waiting until renewal or re-terming an agreement.” Zendesk explains it’s targeting longer-term agreements because it “understands that the longer the contract term, the more uncertainty there is and we want to relieve any concerns by allowing the flexibility to move between agents and usage as customers experiment with and learn AI without locking into either/or.”
Accommodating AI Use Uncertainty
Today’s announcement follows a busy 2024 for Zendesk. In April, it launched an AI-powered customer experience platform with agents and copilots. That service expanded in October to cover more digital channels, including voice interactions. The AI Dynamic pricing model will likely ease executives’ concerns about using AI in their workflow.
A recent study conducted by HumanX and polling firm Harris X underscores this. One of the featured charts details some of the current use cases by business decision-makers (BDMs). Unsurprisingly, more than 40 percent of respondents cited customer service, while 36 percent listed customer service automation.
A subsequent chart reveals several reasons BDMs hesitate to deploy AI within their organizations. Two primary concerns are a lack of technical expertise (29 percent) and budgetary constraints (25 percent). If companies aren’t confident in implementing AI, they are unlikely to commit financially. Moreover, with platforms like Zendesk offering a wide range of capabilities, businesses may also be hesitant about the pricing model. Customers might fear their bills could be too high if they’re paying by the outcome, especially when faced with a contract subscription. Zendesk’s AI Dynamic pricing structure alleviates that pressure.
“As businesses adopt AI, they want to be able to adjust without the potential risk of extra costs or complex commitments,” Keith Dawson, ISG Software Research’s Director of Research, Customer Experience, says. “Zendesk’s pricing model aligns with the market trend of companies seeking a way to explore AI and automation with the added flexibility.”
Featured image: Zendesk Chief Executive Tom Eggemeier gestures on stage during his keynote address at the company's 2024 AI Summit in New York City, New York on October 9, 2024. Photo credit: Ken Yeung
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