Why AI Pricing Feels Confusing
AI tools don’t follow one standard billing model. Some charge by the word, others by the API call, and many wrap complex token-based usage into flat monthly fees. This explainer breaks down the 3 most common pricing models with real-world examples, along with cost control tips for each.
1. Token-Based Pricing
Common for: LLM APIs like OpenAI, Anthropic, Cohere
Unit: Per 1,000 tokens (~750 words)
Key challenge: Hard to predict cost without usage data
| Provider | Model Type | Example Price (2024) | Notes |
|---|---|---|---|
| OpenAI | Pay per 1K tokens | GPT-4 Turbo: $0.01 (input), $0.03 (output) | Pricing varies by model |
| Anthropic | Pay per token | Claude 3 Opus: ~$15 per million input tokens | Larger context windows increase cost |
| Mistral | Open-weight; varies | Free to self-host; some APIs charge based on usage | Often accessed via third-party platforms |
Cost Control Tip:
Use a token counter (like OpenAI tokenizer) before sending prompts, and batch small tasks to avoid bloated API calls.
2. Seat-Based Pricing
Common for: SaaS tools with embedded AI (Notion AI, Grammarly Business)
Unit: Per user/month
Key challenge: Scales linearly—can get expensive fast in larger teams
| Tool | Plan Example | Price (USD) | AI-Specific? |
|---|---|---|---|
| Notion AI | Add-on per user | $10/user/month | AI add-on to standard plans |
| Grammarly | Business w/ AI | $15/user/month | Includes AI rewrite, tone shift |
| Jasper | Creator plan | Starts at $49/month | Includes AI assistant |
Cost Control Tip:
Only assign AI seats to frequent users—don’t overbuy. Many platforms allow flexible seat assignments.
3. Tiered / Usage-Based Plans
Common for: Automation and no-code platforms using AI (Zapier, Writer, Copy.ai)
Unit: Actions, credits, characters, or tasks
Key challenge: Pricing units are non-standardized
| Platform | Usage Metric | Free Tier? | Pricing Detail |
|---|---|---|---|
| Zapier AI | Tasks per month | Yes | Paid tiers start at $19.99/mo |
| Copy.ai | Words per month | Yes | $49/month = ~200K words |
| Writer.com | Knowledge workers | No free tier | Business plans from $18/user/month |
Cost Control Tip:
Track usage monthly. Set alerts where supported. For high-volume use, contact sales for volume pricing or annual contracts.
Bonus: Questions to Ask Before You Buy
- What happens if we exceed our usage cap?
- Are AI features included or add-ons?
- Can we downgrade or pause unused seats?
- Are tokens shared across endpoints or siloed?
Final Word
AI pricing doesn't have to be a black box. By understanding how different models work—and where the hidden costs live—you’ll avoid surprises and choose the right tool for your team size and use case.
