'Converting AI capability into sustainable, auditable revenue remains a challenge' says PwC survey

Software companies are leaving money on the table because their core financial systems haven't kept pace with the way they sell pay-per-use services, which often now incorporate AI capabilities.

According to a survey of 350 execs who work for software vendors, conducted by PwC UK and billing infrastructure biz m3ter, 44 percent of UK business leaders say they have trouble measuring the consumption of usage-based software.

PwC and m3ter claim this measurement blind spot leads to revenue leakage – the gap between the value of what the company sells and the amount actually billed.

This can take the form of failure to capture usage data, like a subscription overage fee that isn't tracked. Or it might reflect out-of-date pricing information, or billing calculation errors.

M3ter claims that between 4 and 7 percent of annual recurring revenue is potentially at risk from unsophisticated bookkeeping.

AI services can compound the problem ...