Why Legora's CEO is betting that every software company ends up ditching the seat
Legal tech startup Legora is moving away from seat-based subscription pricing to a usage-based model driven by the high computing costs of AI. The CEO argues that as AI handles more complex tasks, traditional software pricing models are becoming economically unsustainable.
Why it matters
This shift signals a broader trend in the software industry where the integration of AI is forcing companies to rethink how they monetize their products to account for variable computing costs.
Legora CEO Max Junestrand. Martynas Justinevicius for BI Legora, a startup that builds software for lawyers, has asked customers to stop buying "seats." Instead, the company wants customers to pay based on how much they use Legora's tools. Legora CEO Max Junestrand says AI is changing the economics of running software. The founder of one of legal tech's buzziest startups says a move away from the software seat was only "a matter of time." Since the rise of cloud software, companies have mostly charged for it by the user. A business bought a subscription for a set number of licenses, or "seats," and paid roughly the same whether employees used it religiously or hardly at all. Max Junestrand started Legora, which sells software to the legal industry, at the tail end of software's great subscription boom. Three years later, that playbook is starting to break down.
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