Every legal tech vendor with an existing book of business is facing the same question right now: How do you price the AI features you've just added?
There are three viable answers: gate them behind a higher tier, bundle them into the existing price with an uplift, or meter them as a usage-based add-on.
Most vendors are defaulting to the easiest answer, which is to give AI away to protect renewals, and most vendors are wrong to do so. The wrong choice destroys gross margin invisibly. The right choice funds the AI roadmap and resets pricing power for the next decade.
In this article, we examine the three strategies and when to use them when making this most important pricing decision. Plus, a look at the hybrid answer most vendors will land on, how to price the AI uplift, pricing experiments to conduct before committing, and a COGS reality check.