A Goldman Sachs analysis of roughly 40 software and internet companies confirms this trend spans the sector. The specific mechanics of how vendors will measure and price these work units remain largely undefined, and contract terms are still emerging across the industry.
For in-house counsel and procurement teams, this shift has immediate budget implications. AI costs will become variable rather than fixed, scaling with usage rather than headcount. Organizations need to understand how their vendors define billable units and build forecasting models that account for unpredictable consumption patterns. Contracts should clarify measurement methodologies, rate structures, and cost caps before deployment begins.