The Monetization Log Jam – 2026

The current zeitgeist suggests the un-forecast-able token costs of the foundational LLM models is squeezing B2B software margins.

Over the past month, I surveyed B2B SaaS leaders across industries and stages. After analyzing the data, it does appear margins are being squeezed.

The LLM models however, are not necessarily the culprit. 

Instead the data suggests a monetization log jam, where new resources are blocked from commercial realization.

1886 St. Croix River log jam

In the case of log jams, this means getting to the saw mill. In the case of B2B SaaS, this means new features translate to NRR and ACV increases. 

However, 80% of responses said they’ve added AI features and either haven’t changed pricing or customers haven’t cared. 

When asked what’s caused a pricing change to be delayed or canceled, 58% of responses said C-Suite disagreements or Sales pushback. Just 27% said it was because of technology issues. 

This is our current log jam.

While my survey didn’t detail the specifics of why commercial teams were stalling pricing changes, my top 3 hypotheses are:

  • They don’t actually see the product changes valuable enough to be worth the trouble of changing commercial terms.
  • Product velocity has overwhelmed the existing cadence and expectation for pricing changes. 
  • Items in the product roadmap lacked commercial impact from the beginning.

All of these are just different ways of saying the current product development process is disconnected from commercial strategy and execution. For many of you this disconnect is an age-old phenomenon, now amplified by the speed and costs of LLMs. 

One experienced CTO at an early stage firm quietly admitted to me, when they realized just how far ahead product was from sales they (checks notes) stopped new feature development. A particularly bold solution. Thankfully there are other more sustainable methods to structurally unjam. In the case of the St. Croix river, the $250K Nevers Dam prevented any subsequent log jam. 

Download the full survey analysis to read about the two additional factors compounding the monetization log jam.