Atlassian · Strategy · Mid · 45 to 60 minutes

How should Atlassian price AI and automation?

Atlassian makes software that helps teams plan, track, and collaborate on work, including products like Jira and Confluence. Answer this product management case and get it graded line by line against a weighted rubric.

pricing strategy
product judgment
customer empathy
trade off analysis
go to market thinking

The situation

You are a PM working on pricing strategy for Atlassian's cloud products. Today, most revenue comes from seat based plans, which work well when value scales mainly with the number of people using the software. That assumption is starting to break. New AI and automation capabilities can help every user, run in the background, or even complete work on a team's behalf, so the amount of value created may no longer track neatly to seat count. Leadership wants your recommendation before broader rollout planning for the next buying cycle. Finance is concerned that usage heavy capabilities could create costs that outgrow revenue if pricing does not change. Sales and growth teams are worried that any new charging model could slow adoption, create procurement friction, or make customers fear surprise bills. Enterprise admins also need clear visibility and control over spend. Your job is to propose a pricing strategy that fits Atlassian's existing business, is easy to explain, and can scale across multiple types of AI and automation capabilities without pushing customers away.

What to produce

Write a 1 to 2 page product strategy memo.

Your answer must

Define the core pricing problem and explain why seat based pricing may not fully capture value for AI and automation.
Compare at least two pricing approaches, including their trade offs for customer adoption, revenue alignment, and spend predictability.
Recommend what kinds of usage should be included in the base plan versus charged separately, and explain the logic using at least two different capability types.
Describe the admin visibility and spend control features your strategy would require for enterprise customers.
Outline a rollout and communication plan, including how you would measure success and watch for negative signals after launch.

Constraints

Core product access will remain on seat based plans in the near term.
Many customers buy on annual budgets and need predictable spend, approval paths, and admin controls.
The approach should work across AI assistance, automation, and agent style outcomes, not just one feature.
Do not assume bespoke pricing negotiations or manual exceptions are the main solution.

Format

Use clear headings such as problem, options, recommendation, rollout, and metrics.

How Atlassian actually played it

Atlassian explains why seat-based pricing alone no longer captures the value of AI and automation, and introduces meters for AI credits, automation steps and agent resolutions with built-in allowances and admin limits. It lists what stays free and gives an effective date. A useful example of how a seat-priced SaaS adds usage meters without scaring customers.

When AI changes who does the work, seat count stops tracking value, so add a usage meter.
Keep basic, high-frequency AI actions free to protect adoption.
Give admins visibility and limits to make spend predictable.
Announce effective dates well ahead so customers can plan.

Built from Atlassian's usage-based pricing: AI value with predictability and control by Tamar Yehoshua, Atlassian.