How to Price Artificial Intelligence
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It’s now clear to agencies that they cannot bill by the nanosecond, which means AI must be monetized by charging for the value of the outputs (or outcomes) rather than the cost of the inputs.
Research from the Association of National Advertisers shows that output-based pricing already represents 53% of all agency compensation (up from 5% just a few years ago), and because of AI this trend will continue to accelerate.
This new workshop, based on the very latest solutions being employed by agencies around the world, shows how a solutions-based, AI-powered business model:
* Scales agency revenues without increasing costs
* Optimizes pricing and profits
* Reduces operational expenses
* Leverages the agency’s superstars
* Increases the overall book value of the agency as a business
This workshop explores the process for developing a productized, AI-powered business model and describes in detail five different approaches for effectively capturing the value of AI:
1. AI as a solutions optimizer
2. AI as an operations optimizer
3. AI prices on outcomes
4. AI as products
5. AI-as-a-Service (AIaaS)
All of these points are supported by many examples from agencies in the U.S. and abroad.
Speakers
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Tim Williams
Founding Partner
Ignition Consulting Group
Tim Williams leads Ignition Consulting Group, an international consultancy that helps agencies and other professional service firms create, deliver, and capture more value. Tim is a noted author, international speaker, and presenter for industry associations and business conferences worldwide. He is the author of two books, the latest of which is Positioning for Professionals: How Professional Knowledge Firms Can Differentiate Their Way to Success. As a consultant to advertising and marketing firms, Tim has worked with hundreds of agencies and other professional firms ranging from mid-size independents to multinational networks, including all five of the top agency holding companies. Before forming Ignition Consulting Group, Tim was president of several independent agencies after having worked for global agencies including Ogilvy and Burson-Marsteller in New York and elsewhere.
