How AI Companies Can Rip You Off

Vasu Prathipati
March 17, 2026
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Watch out for AI companies that make money the more you spend on AI. 

They are charging some hard-to-tell upcharge on AI, which they package up as AI credits.

When a company charges this way, they are not incentivized to build cost-efficient AI because the more you spend on AI, the more money they make.

For example, they might use more expensive AI models when they could use less-expensive ones.

They could have the AI run for 15 seconds longer, in what they call “Thinking Mode,” and make more money in those 15 seconds.

When the AI makes a mistake, as long as it’s not so often that you cancel the contract, they are less motivated to fix the error rate because every mistake actually earns them money.

In a world where AI is becoming like electricity, and everyone has access to the same AI models, we believe software companies should not upcharge for AI directly.

This ensures the company’s incentives are aligned with customers' best interest.

I am not sure how most Conversation Analytics solutions charge because pricing is not transparent on the website.

However, if a Conversation Analytics solution does not have usage-based pricing for AI, that is a different red flag. What this suggests is you will not have the required flexibility to do all the AI analysis you might want.

When a solution is not charging explicitly for AI, they need to make sure that if you pay them $10, you don't consume more than $10 worth of AI. They probably need to make sure you don’t consume more than $4. So, they will throttle AI usage and impose constraints to ensure costs stay below that threshold — which can result in lower quality intelligence.

We think it’s critical that customers can pay for AI on a usage basis, but to avoid the first trap, they should charge for AI at cost or as a pass-through.

I wrote this post before Clay announced their pricing change, and I originally intended to use them as a poster child for the pricing trap they found themselves in. However, kudos to the Clay team for changing their pricing model the right way. Read about it as another example of what I’m articulating above and similar to our approach:

Clay Pricing Change Public Announcement

Clay Pricing Change Internal Memo

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