The AI tax: What IT pros need to know

Businesses have to stay on top of their game these days, especially IT. But what if being “cutting edge” means blowing the budget?

Enter the “AI tax”.

This sneaky addition to your software bill might have gone unnoticed, but it’s time to shine a light on this costly issue. 

What is this “AI tax”?

Essentially, it’s the additional cost that software vendors are tacking on for the privilege of using their AI-powered features. You know, those fancy algorithms that promise to make our lives easier and our systems smarter. (If we have the time to delve into it…)

Sounds great, right? Well, not when it comes with an additional cost.

At first glance, a few extra bucks here and there might not seem like much. But when you’re managing multiple software subscriptions across your organization, these costs can quickly add up.

Beyond the financial impact, it’s about the principle. AI should enhance efficiency and drive cost savings, not create new expenses.

A SMP is your trusty sidekick

A SaaS management platform (SMP) has become invaluable for IT teams when it comes to gaining full control of their software exosystems. This tool is your secret weapon in the battle against the AI tax.

With a robust SaaS management platform, you can keep track of all your software subscriptions in one centralized dashboard. This means you’ll always know when contracts are up for renewal and can avoid any nasty surprises, like unexpected AI fees.

Arm yourself with knowledge for contract negotiations

Knowledge is power, especially when it comes to contract negotiations.

Crafting a favorable vendor negotiation strategy starts with understanding market rates and trends. Make sure to evaluate and compare the current industry standards, average costs, and price ranges with the original terms.

This includes paying close attention to details like access to software updates, which can be a key factor in combating the AI tax.

Utilizing a SMP provides you with the access to industry-specific benchmark data to make informed decisions not only during renewals, but also purchasing new software.

The AI tax can’t hide from a complete SMP

The next time you’re reviewing a new software contract and you see that dreaded AI tax, remember the power of a SaaS management platform.

It’s not just about saving money—it’s about taking back control of your software landscape and ensuring you’re always one step ahead of those sneaky costs.

Start saving money on SaaS with BetterCloud: Schedule a demo now.