AI and automation are now part of everyday software development. They help teams work faster, but they also redefine traditional pricing models, such as Fixed Price and Time & Material (T&M). It encourages pricing models to prioritize value, transparency, and outcomes over just hours.
This makes pricing models work differently:
- Fixed Price works best when the scope is clear, and AI features are limited
- Time & Material (T&M) is more flexible for projects with complex or evolving AI requirements
AI projects often change as real data and user behavior come in. That’s why flexible pricing and clear communication are more important than ever.
🔗 Learn more about choosing the right pricing model: How AI and Automation Impact Pricing Models in 2026
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