Keep AI features in a pricier top plan; give basic users a taste

Phil CarterAnd so what you're seeing is more and more apps, Duolingo is a great example, are moving to a two tier or multiple tier structure where you have a basic subscription plan that gives you non-AI features and maybe a taste of the AI power of the product, but you don't get full or unlimited usage. And then if you want the full-blown AI version of the product, then you have to pay for a Pro Plan or a Max Plan or whatever the tier is called.

Phil CarterSo you're seeing this with Duolingo with their Duolingo Max product, which is their new immersive language learning tool that allows you to talk to Lily and do role plays all using voice, not just text. You're also seeing it with products like Perplexity or ChatGPT or Claude themselves. And then there are all sorts of other examples of tool. We've talked about ElevenLabs, we've talked about Tolan all these products have multiple subscription tiers, which used to be very unusual in consumer subscription, but it's becoming a lot more common because you have to protect against the underlying cost of supporting AI features.

David BarnardYeah. And maybe this kind of reconciles our last conversation on price is that as a product guy, I want to just build the best product possible. And so this is that opportunity where if the costs are unreasonable to provide that best experience, maybe you don't just eat the cost, but you create this premium tier. And Cal AI would maybe be a good example of like, and again, I've actually said this multiple times, I'm impressed that they were only …