The New IT Pricing Problem: SaaS, AI Credits and Usage-Based Billing
For years, technology budgeting was relatively straightforward. An organization purchased a certain number of software licences, paid a predictable monthly or annual fee, and built those costs into its IT budget.
That model is changing.
As cloud services, artificial intelligence and increasingly sophisticated SaaS platforms become part of everyday business, more technology vendors are introducing pricing based on actual consumption. Instead of simply paying for a licence or a user, organizations may now pay based on credits, transactions, processing, storage, API calls, AI usage or other measures of activity.
The result is greater flexibility — but potentially less predictable technology costs.
From Licences to Consumption
Traditional software licensing isn’t disappearing, but it is increasingly being combined with consumption-based pricing.
AI is accelerating this shift. Microsoft, for example, now uses Copilot Credits for a number of AI capabilities, with usage-based charges determined by the work being performed. Depending on the service, organizations may encounter fixed licences, prepaid credits, pay-as-you-go billing or a combination of these approaches.
The broader trend extends well beyond one vendor. Gartner has noted that SaaS providers are increasingly moving beyond traditional user-based pricing toward credit- and usage-based models as AI and digital use cases expand.
For businesses, this means that purchasing technology is becoming less about simply asking, “How many users do we have?” and more about understanding how the technology will actually be used.
The Budgeting Challenge
Consumption pricing can make sense. Organizations may pay more closely in proportion to the value or capacity they consume rather than buying licences that sit unused.
But it also introduces a new challenge: forecasting.
Two departments using the same AI platform could generate very different costs depending on the volume and complexity of their usage. An automation that runs occasionally may have little financial impact, while an AI agent performing thousands of actions across several systems could consume significantly more resources.
That makes visibility increasingly important.
The 2026 State of FinOps report shows just how quickly technology cost management is expanding beyond traditional cloud infrastructure. Ninety-eight per cent of respondents now manage AI spending, while 90% manage SaaS or expect to do so within the coming year. The report also identifies AI cost management as the top skill FinOps teams expect to develop.
Organizations therefore need to understand not only what they have purchased, but also:
- Who is using it?
- How much are they consuming?
- Which business areas are generating the costs?
- Is usage producing measurable business value?
- Are spending limits, alerts and governance controls in place?
- Does the commercial agreement still make sense as usage grows?
From Cost Control to Technology Value
The goal shouldn’t simply be to reduce technology spending.
An AI tool that costs more because employees are using it extensively may represent a very good investment. Conversely, an inexpensive application that is barely used may deliver little value at all.
The more useful question is whether technology spending is aligned with business outcomes.
That requires IT, Finance, Procurement and business leaders to work together. Organizations need better visibility into usage, clearer ownership of technology costs and an understanding of what they are receiving in return.
This is particularly important as AI investment continues to grow. Gartner forecasts worldwide spending on AI platforms and models to reach approximately $64 billion in 2026, while noting an increased enterprise focus on usage efficiency, cost control and measurable outcomes.
Preparing for a Less Predictable Pricing Model
Organizations don’t need to avoid consumption-based technology. In many cases, it can provide greater flexibility and allow businesses to scale technology alongside demand.
But the purchasing process needs to evolve with it.
Before adopting a new SaaS or AI platform, organizations should understand the pricing model, develop realistic usage assumptions, determine how consumption will be monitored and establish responsibility for reviewing costs after implementation.
Technology budgets can no longer be viewed only once a year. As pricing becomes more dynamic, organizations will increasingly need to monitor both technology consumption and the value it is delivering.
How Litcom Can Help
Litcom helps organizations make informed technology decisions by assessing technology environments, costs, licensing, vendor arrangements and business requirements. We can help organizations improve visibility into technology spending, evaluate whether existing investments are delivering value, and develop practical strategies for managing technology costs as pricing models continue to evolve.
Need a clearer picture of where your technology dollars are going? Contact Litcom to discuss how we can help you assess your IT environment and identify opportunities to improve cost visibility and value.
