Why nobody can explain what an AI subscription buys you
A product leader who prices AI software for a living could not answer her own simple question.
You price and build AI products yourself, so this one is useful: a product leader who has spent years working specifically on pricing came away unable to explain what her own industry actually sells for twenty dollars a month.
Elena Verna leads growth at Lovable, a tool that builds websites, apps, and internal tools from a prompt. She went looking for a simple answer: if you pay twenty dollars a month for an AI product, what do you actually get? How much can you use it, and how do you know if you need the twenty dollar plan, the hundred dollar plan, or the enterprise plan that starts with a sales call? She expected to answer this quickly. She could not, and says she had, in her own words, vastly overestimated her qualifications to do so.
Her own company is not much clearer. Lovable charges twenty five dollars a month for one hundred "Pro credits," but what a credit actually buys stays invisible until you start building and watch them disappear in real time. ElevenLabs, a voice AI company, runs the same kind of credit system.
The two biggest paid AI subscriptions are not much better. ChatGPT's free plan lists the word "Limited" down almost every line of its feature table. Its first paid tier swaps in "More" across four items without saying more of what. The pricier tiers just trade up to bigger sounding words, "Expanded" or "Maximum," again with no number attached. Anthropic, the company that makes Claude, does a little better on its free tier, but its twenty dollar Pro plan promises only "more usage" than free, with an asterisk that does not connect to any explanation further down the page. Its hundred dollar Max plan claims five times or twenty times more usage than Pro, without ever saying what that starting amount is.
Verna's diagnosis is that this is not simple carelessness. Older software could charge by something countable: a user seat, a gigabyte of storage, a transaction. AI products can do almost anything, from writing an email to building an entire app, and the cost of each task varies so widely that neither the company nor the customer can reliably guess it ahead of time. That is a genuinely hard pricing problem, not a lazy one. But the result for the person paying looks the same either way: millions of people are signing up for, and paying for, products where nobody involved, including the company selling it, can say in one sentence what the money buys.
Her takeaway, and his: being first and exciting is currently enough to get paid, confusing pricing or not. That will not hold once slower, more skeptical buyers start asking the same question Verna did.
Turns out, I have vastly overestimated my qualifications.via Elena Verna (Lenny's Newsletter) →