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Written by Ludovic Dubost on 2024-11-15 at 16:52

The True Cost of AI:

Canva, a SaaS software provider, a few month ago has decided prices increases and justified them through new AI features. Some increases could end up being a 300% price increase.

This is probably going to be a trend, and a nice excuse. As VC-funded SaaS companies are struggling to get the value out of their investments, the excuse of adding AI everywhere will be like a lifeboat to increase revenue stream, creating the illusion of meeting the targets.

https://www.theverge.com/2024/9/3/24234698/canva-price-increase-300-percent-ai-features

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Written by Ludovic Dubost on 2024-11-15 at 16:52

While it increases their revenue, it's not sure it will help the bottom line, as AI costs might grow also.

Now the big question is why should users that don't necessarily need the AI features support the costs of AI ? What if you want a cheaper product with less AI ? What if you don't want to use all the planet's electricity for a slight increase in productivity ?

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Written by Ludovic Dubost on 2024-11-15 at 16:53

This type of example probably shows the true cost of AI. It also shows the bad faith of some SaaS actors, not ready to let the user's choose.

More than ever we need more freedom and more choice, and we need to be careful of early attractive offers by VC-funded companies pouring their money into AI features and not showing the real price to users. Be assured that it won't last.

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