Usage-based pricing
Charging per unit consumed (token, call, transaction). You pay only for value received, but the cost is unpredictable and a successful deployment increases your bill. Punishes success without a cap.
Defined in 2 GAGE programs, which carry 3 distinct definitions of it. The wording above is taught in Business AI Transformation.
How each discipline defines it
The same term does different work depending on who is using it. These are the definitions as each program teaches them, unedited.
Charging per unit consumed (token, call, transaction). You pay only for value received, but the cost is unpredictable and a successful deployment increases your bill. Punishes success without a cap.
A pricing model where you pay per use (per call answered, per message, per credit) rather than a flat fee; worth checking because a busy month can cost much more than an average one.
A charge per unit consumed (per call, token, document, minute). Aligns cost with consumption and scales with adoption, but produces unpredictable bills and does not equate consumption with value.
Where it is taught
The exact lessons this term appears in. The first 7 topics of every program are free with a free account.
- No-Code/Low-Code AI Implementation · Bonus: SMB AI Adoption Path, AI Literacy & Professional Conduct
- AI Investment Categories and Cost Structures · The Economics and the Business Case, Business AI Transformation
- AI-First Products, Services and Business Model Innovation · The Economics and the Business Case, Business AI Transformation
Terms it appears with
Not an alphabetical neighbourhood: these are the terms taught in the same lessons, ranked by how often they appear together.