AI Product Pricing: Credits, Subscriptions, or Usage-Based?

The three pricing models for AI features, and when each one works.

By Richard Ewing·February 7, 2026

Three Models

Subscription: Predictable revenue, but you absorb usage variance risk. Works when usage is relatively uniform across customers.

Usage-Based: Aligns cost with revenue perfectly. But creates customer anxiety and unpredictable revenue. Works for developer tools and APIs.

Credits: Hybrid approach. Customers pre-purchase credits, reducing anxiety while keeping cost-revenue alignment. Works for most B2B SaaS.

The winning strategy for most: subscription base + usage add-on for heavy users.

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