Greg Isenberg argues that AI makes building software easier and may change the economics of traditional per-seat software subscriptions. He describes this as an evolution of SaaSSoftware as a service delivers access to an application operated by a provider, usually through an online service and recurring payment. rather than the disappearance of software businesses.
His proposed model gives a basic tool away, then charges for AI agents that act on the user’s behalf or for human services. He suggests that data and network effectsA network effect occurs when the value of a product or service changes as more people or participants use it. could help improve the product, and considers token-basedToken pricing is the rate an AI provider charges for processing input tokens, generating output tokens, or reading cached tokens. and outcome-based pricingOutcome-based pricing ties a charge to an agreed result rather than only to access, time or raw resource usage..
Isenberg applies the idea to examples such as customer management and calorie tracking. He distinguishes smaller businesses and consumers from enterprise buyers, who he expects may continue paying for security and support. These are his predictions, not established market outcomes.
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