For roughly a decade, consumer software had a default price: $9.99 a month. Music streaming set it, video streaming confirmed it, and everything from meditation apps to cloud storage lined up beneath it. A subscription over $15 had to justify itself; one over $30 was for businesses.

Then, in early 2023, ChatGPT Plus launched at $20 a month — and the ceiling moved.

How $20 became the new $9.99

What's striking isn't that one product chose $20. It's how quickly the rest of the market clustered around it. Claude Pro, Perplexity Pro, Google's AI premium tier — at the time of writing, the flagship consumer AI assistants nearly all sit at or around the same $20/month mark.

This is price anchoring, working exactly as the textbooks describe. The first mover established what a "serious" AI assistant costs, and followers had no reason to undercut a price the market had already accepted. In two years, the anchor for a personal software subscription effectively doubled.

The three-digit normalization

The more consequential shift is happening above the $20 tier. The major AI vendors now sell "pro" and "max" tiers for individuals at $100 to $200+ per month — prices that, five years ago, existed only in enterprise sales decks.

Plenty of professionals get real value at those prices. But notice the psychological mechanics: once $200/month exists on the pricing page, $20/month looks modest by comparison — that's the decoy effect, and it's one more reason the $20 tier feels so easy to say yes to. Three-digit monthly software spend for one person is being normalized in real time.

AI is also inflating the subscriptions you already have

The second-order effect is quieter. Productivity suites, design tools, note-taking apps, email clients — software you already pay for is adding AI features and, with them, new price tiers, add-ons, or across-the-board increases. You don't have to buy a single AI subscription to feel AI in your subscription budget.

This rhymes with what we wrote about streaming price inflation: when a category's costs rise (content rights then, GPU compute now), subscribers eventually carry it.

The overlap problem

Here's the trap specific to AI tools: their capabilities converge. The leading assistants can all draft an email, summarize a document, debug code, and answer research questions. Yet it's remarkably easy to end up paying for two or three of them at once — one you subscribed to first, one your work uses, one you tried during a launch week and never cancelled.

The leapfrog cycle makes it worse. Every few months a new model tops the benchmarks, tech media declares a new winner, and the temptation is to add the new subscription rather than replace the old one. Subscription accumulation was already the pattern with streaming; AI compresses the cycle from years to months.

Keeping your AI stack lean

One paid assistant at a time. Pick the one that fits your actual daily work. For most people, the marginal value of a second $20 assistant is close to zero.
Prefer monthly billing. In a market this fast, the flexibility to switch is worth more than the annual discount — the same break-even logic from our annual vs. monthly guide, with the dial turned up.
Evaluate on free tiers. Every major assistant has one. Use it to test whether a rival is genuinely better for your use case before moving your $20.
Audit the overlap quarterly. List every AI tool you pay for — assistants, image generators, coding copilots, AI add-ons inside other products — and ask which ones answered a question this month that another couldn't.
Track them like everything else. AI subscriptions are recurring charges like any other, and they show up in WinnowFi's detection the same way — with a renewal alert 7 days before each charge, so the leapfrog cycle never bills you on autopilot.

AI subscriptions

The $20 Tier: How AI Assistants Quietly Doubled the Price of Software