Zendesk introduces outcome-based pricing for AI solutions

Zendesk has announced a significant change in its pricing model, introducing Outcome-Based Pricing for AI agents. This new approach means that businesses will only pay for issues that are fully resolved by AI, directly aligning costs with the value delivered by AI. This makes Zendesk the first in the customer experience (CX) industry to adopt such a model.

The decision to shift pricing comes in response to broader industry discussions concerning the tangible value of AI solutions. According to Gartner, one of the main barriers to the implementation of AI technologies has been the difficulty in estimating or demonstrating their value to businesses. Zendesk aims to address this gap with its new pricing model.

Nikhil Sane, Senior Vice President of GTM Strategy and Pricing at Zendesk, stated, "Zendesk's commitment to innovation has always been driven by a deep understanding of our customers' evolving needs. As the industry moves toward more transparent, results-oriented business models, we are proud to lead the way with a solution that ensures companies can confidently invest in AI."

Zendesk's AI agents are designed to handle complex customer issues autonomously. According to the company's Future of AI-powered CX report, 89% of business leaders in the Asia-Pacific (APAC) region believe that AI is transforming customer experience. This transformation requires pricing models that accurately reflect the value AI brings to businesses.

The new Outcome-Based Pricing aims to address existing concerns around AI implementation costs and transparency. Maureen Chong, Regional Vice President for Asia at Zendesk, commented, "Many leaders we've spoken to in Asia are excited about the promise of AI. Yet, they still have reservations, typically around the perception of prohibitively high costs associated with AI implementations and the lack of transparency in showing its direct impact on business outcomes."

Key elements of Zendesk's revised pricing model include a focus on customer flexibility, simplicity, and scalability. Businesses can now integrate AI agents in a manner that suits their specific needs and timelines, with the option to continue using human agents where necessary. The model also includes an in-product dashboard, offering visibility into automated resolution usage and automation rates. This scalable approach allows businesses to manage their budgets effectively and avoid unexpected costs.

As automation becomes increasingly vital in handling customer interactions, Zendesk includes AI agent capabilities for all Zendesk Suite and Support plans, with a starter usage level provided at no additional cost. "By transitioning to Outcome-Based Pricing, Zendesk believes this not only reflects the value of AI but ensures that businesses can continue to deliver smarter, more efficient customer experiences," the press release stated.

According to Zendesk, up to 80% of customer interactions will soon be automated, highlighting the need for businesses to adapt to the rapid changes brought about by AI. Traditional pricing models, which do not align costs with the actual value delivered, are becoming outdated. Zendesk's new model is designed to ensure that businesses only invest in successful outcomes, aligning costs directly with the value received.

Zendesk's move to Outcome-Based Pricing is likely to set a precedent in the CX industry. As companies continue to leverage AI for customer service, this pricing model could become an industry standard, shaping how businesses measure and pay for the value of AI-driven solutions.