Measuring the True Cost of Chatbots
A new startup, Pay-i, is tackling the challenge of determining the cost-effectiveness of chatbots and generative AI (GAI) models in enterprise settings. Founded in 2023 by former Microsoft employees David Tepper, Doron Holan, and Erik Winters, Pay-i has developed a technology that helps companies understand the financial implications of using these AI tools.
By inserting a couple of extra lines of code, developers can gain visibility into the costs associated with each chatbot query and response. This is particularly useful for enterprises that use multiple chatbot brands, such as OpenAI, Anthropic, Google, or Microsoft. Pay-i’s technology can track changes in model updates, such as cost, performance, and error rates, allowing businesses to make informed decisions about their AI investments.
“OpenAI will release a new update that literally overwrites the model you were using,” said Pay-i CEO David Tepper. “It’s making new decisions — it’s chatting differently to the end user.” Pay-i’s solution helps businesses understand whether these changes improve or degrade the performance of their AI systems.
Pay-i has been working with Stanford for the past 11 months to resolve a key problem in academia related to GAI. Once this problem is solved, Pay-i plans to be the first to market with a product that can address this issue.
The startup recently announced $4.9 million in seed funding to expand its operations and further develop its platform. Tepper, who spent 19 years at Microsoft and co-led Azure’s internal GAI consumption strategy, has extensive experience in AI economics. He believes that understanding the economics of AI is crucial for businesses to get the most out of their investments.
As GAI technology continues to evolve rapidly, Pay-i is poised to help companies navigate the complex landscape of AI costs and benefits. With its innovative approach, Pay-i is set to make a significant impact in the world of finance and technology.
