News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers

Daily News / Artificial Intelligence, Business Strategy

“Pricing Not Disclosed” Becomes a Risk as AI Screens MSPs Out of Deals

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Dave sobel, host of the business of tech podcast
Dave Sobel
Dave Sobel is a leading expert in the delivery of technology services with broad experience in both technology and business. He owned and operated a technology solution provider for over a decade, and worked for vendors leading community, marketing, product strategies, and M&A activities.

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Episode Description

The episode centers on a structural shift driven by the falling cost of AI-assisted insight extraction and its impact on how buyers assess technology providers. Referencing companies such as OpenAI and Google, as well as research from the AI Revenue Institute and Gartner, Dave Sobel highlights how lowered model prices enable automated systems to rapidly analyze vendor documentation and shape procurement decisions, fundamentally changing the basis of competition from persuasion to transparent, retrievable data.

A recent AI Revenue Institute study, as cited by Dave Sobel, found that over half of surveyed decision-makers had removed a vendor from consideration after an AI assistant highlighted a documented shortcoming. Simultaneously, OpenAI and Google have reduced their top-tier AI model pricing, with OpenAI dropping costs by more than 20% and Google offering a temporary 50% cut before reverting. Analysis from TD Cowen and Business Insider shows that such price cuts have driven up both usage and revenue, with OpenAI’s low-cost models experiencing a 14-fold usage increase post-reduction.

These developments are reinforced by Gartner’s identification of the “inference paradox,” where greater AI capabilities and lower per-query costs actually raise overall spend due to increased volume and complexity of tasks. Supporting data includes Google’s reported 50x annual increase in tokens processed and a Deloitte case of a healthcare provider with unplanned AI costs rising as much as 3x in a year. Alongside this, Pew Research identifies that a third of new web content on commercial sites is machine-generated, leading platforms like LinkedIn to introduce AI-detection and downranking measures.

For MSPs and IT leaders, the implications are direct. Automated buyer research now prioritizes concrete, extractable data over marketing language; any absence or non-disclosure—especially around pricing—can result in removal from consideration without notice. Publishing specific, measurable facts (service boundaries, pricing logic, response times with dates) increasingly determines whether a provider is surfaced or omitted by AI agents assembling comparative analyses. Failure to clearly define offerings and exclusions results in unfavorable inferences or comparisons, increasing operational risk and transfer of accountability away from the provider.

00:00 The Buyers Brought a Machine
03:45 Cheaper Made It Bigger
06:49 Your Website Is a Deposition
10:06 Why Do We Care?

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