AI set to disrupt pricing models for business communication services
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Mumbai: Companies that provide call-centre and business messaging services are expecting a shift in the way they charge customers to a more outcome-based and bundled pricing structure from the traditional pay-per-message or pay-per-seat models, as artificial intelligence takes over voice and text conversations and reduces manpower costs, executives said.'Call centres are still charging pay-per-seat...although there is a huge risk that that will be disrupted as AI reduces that cost significantly,' said Ivan Ostojic, chief business officer at London-based Infobip, which offers cloud-based communications tools for marketing, sales and support.'We expect to see a telco-type model where I have some predicted consumption per user and then I can create a bundle for you — from SaaS or AI, down to the channel. It'll be like interaction, consumption conversation. And then there'll be bundles that secure you from price hikes or drops,' he said.Communication-platform-as-a-service (CPaaS) companies like Infobip are now experimenting with unlocking use cases where the cost of implementation justifies the benefit incurred. Going forward, multi-channel conversations across SMS, voice, WhatsApp, RCS and in-app notifications could well be priced in bundles as AI agents automate workflows, industry executives said.'Our pricing models vary depending on several factors, including the complexity of the use case, the extent of AI integration and backend systems involved,' said Deepak Goyal, chief business officer at Tanla Platforms , a Hyderabad-based company providing tools to help businesses communicate with their customers.Although AI use cases are costlier than structured, rule-based conversational offerings, customers are willing to pay a premium as value created outweighs the incremental cost, he said.For instance, Tanla ran a campaign for a retail brand where users were prompted to upload images of broken appliances via WhatsApp in exchange for an exclusive coupon. Although multimodal AI image recognition is expensive to deploy, this campaign achieved redemption rates as high as 30 times, Goyal said.'GenAI based use cases are at an early stage of their journey and are yet to find a right pricing fit,' said Gautam Badalia, CEO of Route Mobile , another CPaaS company. 'There is a significant cost involved in GenAI interactions based on the various engines available today.'As AI agents unlock new use-uses in customer services, the pricing models will also evolve to be more outcome based, he said. 'Currently, pay-per-message is the most prominent pricing model with AI agents.'Route Mobile enabled an insurance company to use an AI agent which converses with users on WhatsApp to understand their profile and needs and suggests the most relevant policy. 'This solution is targeted to overcome any human errors in policy suggestions and avoid potential mis-selling,' Badalia said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
18 minutes ago
- Business Standard
Brigade Hotel mobilises ₹325 crore from anchor investors ahead of IPO
The initial public offering (IPO) will open on Thursday and close on July 28, with a price band of ₹85 to ₹90 per share Press Trust of India New Delhi Brigade Hotel Ventures Ltd, owner and developer of hotels in south India, on Wednesday raised Rs 325 crore from anchor investors, a day before its initial share-sale opening for public subscription. The anchor book saw participation from investors, including SBI Mutual Fund (MF), 360 One MF, Axis MF, Motilal Oswal MF, Bandhan MF, Edelweiss MF and Nuvama MF, according to a circular uploaded on the BSE's website. As per the circular, Brigade Hotel Ventures has allotted over 3.6 crore equity shares to 17 funds at Rs 90 apiece. This aggregates the capital raising to Rs 324.72 crore. The initial public offering (IPO) is scheduled to open on Thursday and conclude on July 28. The price band has been set at Rs 85 to Rs 90 per share. At the upper end of the price band, the company is valued at over Rs 3,400 crore. Brigade Hotel Ventures' IPO is entirely a fresh issue of equity shares worth Rs 759.6 crore with no offer-for sale (OFS) component. Proceeds from the issue to the tune of Rs 468.14 crore will be used for the payment of debt; Rs 107.52 crore will be utilised for the purchase of an undivided share of land from the promoter, BEL; and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes. Earlier this month, Brigade Hotel Ventures raised Rs 126 crore by selling equity shares to 360 ONE Alternates Asset Management. Brigade Hotel Ventures Ltd is a subsidiary of Bengaluru-based real estate company Brigade Enterprises Ltd (BEL). BEL entered into the hospitality business in 2004 with the development of its first hotel, Grand Mercure Bangalore, which commenced operations in 2009. The company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat) with 1,604 keys. The hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group. The company announced that 75 per cent of the offer size has been set aside for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. JM Financial and ICICI Securities are the book-running lead managers to the issue. Shares of the company are expected to list on the bourses on July 31. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Mint
18 minutes ago
- Mint
Rate Cuts Seen Lifting Philippine Bonds From Asia's Lowest Ranks
(Bloomberg) -- Philippine bonds are poised to rebound from the bottom of Asia's debt rankings, thanks to the central bank's room to cut rates and their relative insulation from US Treasury moves. Interest rates in the Philippines, after adjusting for inflation, are the highest in emerging Asia. That means Bangko Sentral Ng Pilipinas can slash rates further on top of its 125 basis points of cuts over the past year, a move that would favor local debt. Philippine bonds, along with other local currency debt, are being sought by investors diversifying from US assets as the dollar weakens in the face of President Donald Trump's tariffs. The Southeast Asian nation's bonds have an edge due to its minimal correlation with Treasuries, which are facing pressure due to US fiscal concerns. 'We have a constructive view on Philippine government bonds, given our views on the inflation outlook,' said Leonard Kwan, a Hong Kong-based portfolio manager at T. Rowe Price Group Inc. Their 'de-correlated profile' to Treasuries is another draw for investors, he said. Benchmark 10-year yields in the Philippines have risen 10 basis points this year to 6.28%, while nearly all other emerging Asian yields on similar tenors have fallen in that period. Peso bonds underperformed amid wider budget deficit expectations and the impact of an earlier rise in oil prices. However, inflation undershooting BSP's 2%-4% target for four straight months has positioned Philippine bonds for gains. The local policy rate after adjusting for recent inflation now stands at 385 basis points, the most in emerging Asia, giving the BSP a greater leeway to cut rates. The dovish wagers are starting to show up in market forecasts, with the Philippine 10-year yield estimated to fall to 5.67% by year-end, according to a median of economists surveyed by Bloomberg. That level was last seen in October 2024. Peso bonds are also likely to be more shielded from any losses in US debt as concern over the fiscal deficit and uncertainties over further Federal Reserve rate cuts unsettle markets. The 120-day correlation between 10-year Philippine bonds and Treasuries stands around 0.10, according to Bloomberg calculations, signaling that both assets hardly move in lockstep. Investors are also watching if JPMorgan Chase & Co. would include Philippine debt into its local-currency emerging-market debt index this year. Citigroup Inc. sees the inclusion of Philippine bonds in global indexes providing another tailwind for the nation's bonds, strategists Gordon Goh and Rohit Garg wrote in a note on Monday. They also recommended maintaining a long currency-hedged position in 10-year Philippine government bonds on expectations of further policy rate cuts and disinflation pressure. More stories like this are available on
India.com
18 minutes ago
- India.com
Bad news for TCS employees! Ratan Tata's company issues another strict rule, defaulters to face action; it is about..., these people to be hit hardest
Bad news for TCS employees! Ratan Tata's company issues another strict rule, defaulters to face action; it is about..., these people to be hit hardest Tata Consultancy Services (TCS), one of India's largest IT firms, is experiencing criticism on several fronts. From its newly enforced bench policy that has sparked panic among employees, to the indefinite delay in onboarding over 600 lateral hires, the company is facing intense scrutiny. Compounding the fury, IT employee union NITES has sent a letter to the Ministry of Labour and Employment requesting government support and intervention in the ongoing issues affecting professionals from TCS. What is the new strict rule introduced by TCS? Now, another report has come out, indicating that the IT firm has issued an instant five-day return-to-work requirement for its employees in the United States. Employees must comply with the directive. Furthermore, IT giant has even warned that staff will be monitored and called out if they don't comply, reported The Register. Who will be affected by this immediate office return order? A TCS employee based in the US told The Register that they had received an internal email from HR requiring a full return to office 'to enrich our workplace experience, effective immediately.' The email directed all employees, except those working on client sites or previously approved for remote work, to return to the office. In their 2023 press release, TCS had over 45,000 employees working across US-based companies, making the sudden policy shift significant in scale and impact. 'We can confirm that as a part of our ongoing plan to return to office globally, our US operations have also resumed full week working from the office, like many other regions,' TCS told us, reported The Register. Who are the employees most affected by this policy? The worker, who asked to remain anonymous, also stated that speculation is loaded in TCS's offices in North America, with internal chatter indicating that job cuts could be as high as 30 per cent. As to these claims, a spokesperson from TCS commented, 'While we don't comment on rumors and speculation, we can confirm we have not announced any layoffs in the US,' reported The Register. In a letter, NITES has called on the Ministry of Labour and Employment to intervene and ensure that TCS provides a clear timeline for bringing on board the impacted lateral hires. The employee group also sought compensation for the delay and asked TCS to consider alternative appropriate roles in the company for the impacted professionals.
