hard20 pts · first answer countsai-productsunit-economics

Margins on an AI feature

An AI add-on costs customers $10 per user per month. The average user makes 300 requests per month and each request costs you $0.01 in model and infrastructure costs. What is the gross margin on the add-on, and what is the main risk?

A.97%; there is no real riskB.30%; the feature should be cancelledC.70%; heavy users could cost far more than average, so consider usage limits, tiered pricing or cheaper models for simple requestsD.100%, because software has no marginal cost

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Margins on an AI feature

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