Software Makers Struggle to Monetize AI Features as Adoption Lags

Revenera released a report Wednesday showing that while virtually every software vendor has rolled out AI features, customer uptake remains sluggish. The software monetization platform surveyed 415 executives at software companies during June and July, finding that close to half report low or limited adoption of their AI offerings.

The financial picture is mixed. Slightly more than half of surveyed providers say AI capabilities are boosting profitability, yet nearly one in five report that offering AI has actually hurt their bottom line. Software makers continue to search for the return on investment promised by the technology.

Pricing remains a central challenge. While some vendors experiment with new models based on token consumption or business outcomes, most maintain subscription-based approaches. Nicole Segerer, SVP and general manager of Revenera, explained the customer perspective: "The customers don't want to deal with very bumpy pricing. They don't want to deal with a shock, where at the end of the month it's a lot higher than it should have been."

Pricing Models in Transition

Enterprise software vendors and the organizations buying from them are both pursuing measurable returns from AI, even as the technology and its cost structures evolve rapidly. Some providers are experimenting with consumption-based or results-driven pricing, but many CIOs struggle to forecast expenses and connect AI spending to concrete business value.

While cutting-edge AI models dominate headlines, the vendors most enterprises actually work with are taking a cautious approach to restructuring their pricing, Segerer noted. Enterprise software makers tend to prioritize keeping CIOs satisfied, she added, and most employees are already using AI features embedded in their everyday software tools.

Subscription pricing remains the dominant revenue driver, with 66% of providers reporting it as a significant source. One-time perpetual licenses came second at 44%, while newer approaches including prepaid usage, postpaid usage and outcome-based pricing lag behind.

The SaaSpocalypse That Didn't Happen

Earlier this year, fears of a "SaaSpocalypse"—a potential collapse of traditional software-as-a-service models due to AI disruption—circulated through the industry. The data tells a different story. Only 7% of software providers reported a decline in subscription sales attributable to AI. However, roughly one-quarter anticipate that broader adoption of AI agents could soon erode demand for traditional subscription seats.

Understanding how AI features are actually being deployed takes time, and customizable plans can help organizations pay only for what they use. Segerer observed that "many technology companies have rushed to implement AI capabilities, but as AI develops and changes quickly, some of those capabilities are not getting used enough."

Negotiating the Complexity

CIOs retain leverage during contract renewals to negotiate better pricing, even as models shift. Yet navigating consumption-based structures requires effort. Segerer noted that "understanding what exactly a consumption-based model is per vendor does take a little bit of work," and the problem multiplies when dealing with multiple vendors. "When I'm a CIO, that problem compounds to me because every vendor might have a different way of dealing with it," she said.