Competition will heat up as AI-native challengers begin to chip away at market leaders across business processes and create new market segments that were previously unaddressed by software. In addition, new entrants are rapidly growing and disrupting the market with leaner operating models.
Purpose-Built AI vs. General AI: The Bonfire vs. Blowtorch Analogy Mathew shares a powerful analogy from Daza Greenwood about the difference between general AI tools (ChatGPT, Claude, Gemini) and purpose-built legal AI. General AI is like a massive bonfire-incredibly powerful and versatile, but not specialized. Purpose-built legal AI is like taking that fire and harnessing it into a blowtorch - you can now weld with precision.
Understand the changing role of consumers. Take back ownership of the strategic agenda. Review the relevance of 'old world' classifications such as above-the-line and below-the-line. Develop open sourcing for ideas as a viable financial model. To take responsibility for driving a change in pricing models to account for the impact of digital. Move to outcome-based compensation rather than hourly rates and manpower.
Experian said this week it will make VantageScore 4.0 available at no cost indefinitely, pledging that if it ever begins charging, its pricing will remain at least 50% lower than FICO's. A week earlier, Equifax said it will offer VantageScore 4.0 at $4.50 per score through 2027, while also providing it for free through 2026 to customers who purchase FICO scores during that period.
AI Summary Fair Isaac Corp.'s (FICO) decision to let resellers calculate and distribute its scores directly to lenders drew a mixed response from the mortgage industry viewed by some as a step toward more competition, but by others as a potential driver of higher credit score costs in the short term. On Wednesday, FICO unveiled the program, which bypasses the three nationwide credit bureaus (Equifax, TransUnion and Experian) by distributing scores directly to credit reporting agencies (CRAs).
Under the new agreement, CISPE members can offer Microsoft software to customers on a pay-as-you-go basis through the CSP-Hoster program, enhancing privacy for European customers.