E-commerce

Using AI to price your services? Here’s what you’re missing

Freelancers become their own bosses to control their income, set their rates, and finally escape the salary caps of traditional jobs. So why are so many now handing that control straight over to a machine? Why trade the boss who capped your pay for one that’s now setting your income using the same tool you asked last week, “Why does Instagram keep cropping my carousel?” or “What even is the aspect ratio for Reels in 2025?”

I’ve been watching too many brilliant freelancers and creative business owners hand over their pricing decisions to AI and it’s not only costing them money, but confidence in what they charge.

Don’t get me wrong, AI is brilliant for so many things. On any given day, the titles in my ChatGPT sidebar sound like the inside of my brain at 3PM: “Dinner Ideas,” “Birthday Card Copy,” and “Instagram Aspect Ratio Fix” (because that latest IG update completely wrecked my feed layout). But when it comes to pricing your services? That’s where things get messy, and potentially very expensive.

AI pricing sounds clever, but it’s not strategic

AI tools are trained on patterns, not profits. They trawl the internet, average out all the data they find, and spit back a number with absolutely zero context about your actual situation. Sure, it’s quick and feels efficient, but it completely misses the things that matter most; your income goals, your capacity, your delivery model, and most importantly-the actual value of the results you’re providing to your clients.

It keeps you stuck reacting to averages instead of building a pricing model that reflects the way you work and what you want to earn. When AI looks at a market full of undercharging freelancers, it decides you should undercharge too. And just like that, you’re not leading your business, you’re following the lowest bidder.

It’s also surprisingly bad at math

Seriously, it sucks at math. AI is a language model, not a calculator. It’s trained to predict words that sound right, not compute numbers that are right. you may as well let a magic 8-ball tell you what to charge.

It doesn’t account for non-billable time, holidays, sick days, or admin. It just makes the maths sound plausible and plausible isn’t profitable.

It locks you into the lowest rung

This is the cost of treating AI like a pricing authority. Because it relies on what’s already out there, regardless of whether it’s working, you end up with recycled rates based on what undercharging freelancers are currently doing.

AI won’t challenge the status quo. It reinforces it. If you want to price like someone who’s done this before? You need to think beyond the middle of the pack.

It also sets you up for burnout 

Low prices mean chasing too many clients, taking on way too much work, and running at maximum capacity just to make ends meet. AI doesn’t understand the reality of client work, things like scope creep, the emotional labour of managing difficult clients, or all the time spent on client communication. 

Ok, so what do I do instead? 

Look, I’m not saying you need to throw out AI completely. But you absolutely need to take back control of your pricing decisions. Here’s how to do it properly:

Start with your actual numbers 

Begin with your annual income goal, add on your costs of doing business aka expenses, factor in tax, and time off. Realistically look at the hours you have to serve your clients and set aside time to work on your business. Calculating your hourly rate isn’t emotional, it’s logical, and it needs to set the value of your time so you can use it to build your spread of offerings.

Build offers that solve problems 

Stop charging for time and start charging for the problems you solve. Highlight the value your clients get, not just the task list you’ll complete. People don’t solve expensive problems with cheap pricing, and more often than not a lower price scares a smart client off than entices them.

Use AI after you’ve done the strategic thinking 

Once you’ve sorted your pricing strategy, then let AI help you with the implementation:

• Draft your service page copy
• Tidy up proposals
• Generate follow-up emails

But don’t let it take the lead for your pricing decisions. That’s your job.

AI is a tool, not a business compass. Let it support what you’re building, but don’t let it steer the ship. Getting your pricing wrong could cost you tens of thousands. You’re far too smart –  and way too talented – to work that hard for that little. Trust me, future freelance you will thank you for it.

• This story was originally published on Inside Small Business.