The Pricing Shift Reshaping Enterprise AI Spend - with Adam Mansfield of UpperEdge

The AI in Business Podcast37mJune 1, 2026
AI-Generated Summary

AI is triggering a seismic shift in enterprise software pricing, moving from predictable seat-based models to complex hybrid and consumption-based systems that make budgeting nearly impossible. Adam Mansfield of UpperEdge warns that vendors like Microsoft, Salesforce, and OpenAI are structuring deals to maximize their own revenue growth—leveraging the 'flywheel effect' and 'hockey stick' curves—while shifting all financial risk onto customers. The result? Companies can face sudden, unforecasted bills of $50,000 to $100,000 per month when usage spikes, often with no refunds or carryover credits. What’s worse, vendors are still figuring out their own pricing models in real time, leaving buyers in the dark. The solution isn’t more negotiation tactics—it’s a strategic, coordinated pre-negotiation campaign. Leaders must proactively engage vendors at the C-suite level *before* any deal, demanding transparency on forecasting, overage costs, and ROI timelines. By aligning IT, business, and procurement teams to send a unified message, executives can force vendors to answer hard questions early, expose their weaknesses, and build leverage long before the contract is on the table. The real danger isn’t AI adoption—it’s adopting AI without a plan to control its cost.

Key Takeaways
1

AI pricing is shifting to hybrid and consumption-based models that make long-term spend unpredictable and financially risky.

2

Vendors are structuring deals to maximize revenue growth, not customer success, using flywheel and hockey stick dynamics that reward overuse.

3

Customers bear all risk—there are no refunds for overuse, and overage costs can spike to $50,000–$100,000/month with no warning.

4

The best leverage comes from pre-negotiation: engage vendors at the C-suite level *now*, before renewal, with a unified, coordinated request for transparency.

5

Audit current usage and value across all vendor products—know where you’re overpaying or underutilizing to build negotiation power.

…and 3 more takeaways available in PodZeus

Chapters
0:12
2 min

The AI Pricing Revolution

Introducing the shift from seat-based licensing to unpredictable consumption-based models that are making enterprise AI spend nearly impossible to forecast.

2:06
3 min

Why Consumption Pricing Is a Trap

The rapid evolution of AI has left vendors and buyers figuring things out in parallel, creating a dangerous gap in transparency and risk allocation.

5:13
4 min

The Hidden Risk: Who Bears the Cost?

Consumption-based pricing shifts all financial risk to the customer, with no refunds, carryover, or transparency on overage costs.

9:04
3 min

The Vendor’s Incentive: More Usage, More Revenue

Publicly traded vendors are incentivized to drive consumption—AI reduces headcount but increases revenue, creating a conflict of interest.

12:06
5 min

The Hybrid Model: A New Layer of Complexity

Even seat-based vendors like Microsoft now embed consumption meters, creating hidden overage risks within bundled packages.

High-Impact Quotes
And they're not going to just want snacks. They're going to want to literally have your house.
Adam Mansfield35:18
I'm not going to say intentionally created, but I'm going to say it was intentionally created. What do you mean by that? They don't want transparency because they win in the long run.
Adam Mansfield11:20
The sooner you do this, the sooner you start to create uncertainty and build that leverage I was talking about.
Adam Mansfield29:14
Speakers

Host

Host of The AI in Business Podcast

Guest

Adam Mansfield
Topics Discussed
ai pricing models95%consumption-based pricing90%vendor negotiations88%enterprise ai spend85%ai vendor risk80%ai adoption strategy75%ai contract terms70%ai cost forecasting65%
People & Brands

Adam Mansfield

person

12xNeutral

Salesforce

organization

8xNeutral

Microsoft

organization

6xNeutral

Upper Edge

organization

4xNeutral

AgentForce

product

4xNeutral

ServiceNow

organization

3xNeutral

Tableau

product

2xNeutral

Anthropic

organization

2xNeutral

OpenAI

organization

2xNeutral

Adobe

organization

1xNeutral

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