Reselling Shared AI Platform Subscriptions:Business Models and Pricing Strategies in the Algerian Market

1. Accessibility and Affordability of AI Tools Globally

Artificial intelligence (AI) tool range and strength have become important factors that affect their adoption worldwide. While AI has the ability to drive innovation and economic development, inequalities face access and costs important challenges, especially in lower and medium-or-ic (LMIC).In high-income regions, AI tools are increasingly integrated into business operations, enhancing efficiency and competitiveness. However, the situation differs in LMICs, where the high costs associated with AI adoption can be prohibitive. For instance, a $20 monthly subscription for an AI tool may represent a substantial portion of a developer’s monthly income in Southeast Asia, highlighting the economic barriers to AI access in these regions (Cursor Forum, 2025). Moreover, the development and deployment of advanced AI models require substantial computational resources, translating to high operational costs. Estimates suggest that training models like OpenAI’s GPT-4 and Google’s Gemini Ultra can cost up to $191 million, underscoring the financial barriers to AI development and access (Technology and Society, 2025). These costs often result in limited availability of cutting-edge AI tools in resource-constrained settings.

To solve these challenges, the initiative focusing on the open SOS AI tool has been given traction. Open Source platforms provide basic resources to reduce the time for development and costs, to create AI applications. For example, indicating digital platforms for Kenya’s financial services, such as the M-PESA, how the open source solution can facilitate access to AI technologies in LMIC (Khan, 2024). In addition, profit organizations do not develop AI tools that correspond to the needs of weak societies. At the top, in collaboration with Education, MIT and Harvard, Digi war, launched an independent, open source AI Literacy program, aimed at teaching children in non-English-speaking areas that are seriously linked to AI with the aim of teaching children in non-English-speaking areas.(Business Insider, 2025).

Despite this effort, challenges remain. Limited digital infrastructure, including incredible internet connection and inadequate computing, prevents effective distribution of AI systems in many developing countries (UNFCCC, 2025). Furthermore, the dominance of English-language AI tools poses accessibility issues for non-English-speaking populations, potentially exacerbating existing inequalities (Columbia Business School, 2025).

2. SaaS (Software-as-a-Service) Pricing Models

SaaS (Software-as-a-Service) has transformed the software industry from traditional licensing to subscription-based delivery, requiring different pricing strategies that organize with both customer’s needs and business objectives. The most common approach is a subscription-based price, where customers are recurring fees or annual chokes for the Fore Cesses of the Software Feware, often designed in layers based on features or levels of consumption, which provides estimated income currents for providers and lower-up-to-date costs for users. (Saltan, 2021). Usage-based, or pay-as-you-go, pricing charges customers according to their consumption of resources or services, aligning provider revenue with customer value and proving particularly suitable for AI-driven platforms with variable usage patterns (Zhang, 2020; Business Insider, 2025). Hybrid models combine these strategies by offering a base subscription with additional charges for premium features or higher usage, balancing predictable income with scalability (Saltan, 2021). On the other hand, value -based prices, instead of delivery costs, determine the fees according to the alleged price to the customer, which can increase satisfaction and loyalty, but requires a deep understanding of the customer’s needs. (Business Insider, 2025). Additionally, psychological pricing strategies, such as charm pricing or decoy options, are employed to influence perception and purchasing behavior, further demonstrating the complexity and strategic importance of SaaS pricing. Collectively, these models illustrate how SaaS providers must carefully consider customer segmentation, usage variability, and perceived value in developing pricing strategies that sustain competitiveness in a rapidly evolving digital economy.

3. Subscription Sharing and Reselling in Other Markets (Netflix, Spotify, etc. - Parallels to AI Platforms)

Subscription sharing and reserving have become an important event in digital media markets, especially in member-based entertainment and streaming services such as Netflix, Spotiff and Hulu. Consumers want to reduce personal costs by pouring resources, sharing accounts, sharing accounts or by participating in informal resale markets, creating parallel economies that challenge traditional price and distribution models.(Kumar & Rajan, 2021). This practice is driven by several factors, including lack of strength, desire for flexible access and perception of relative value of costs. Research indicates that sharing and rehabilitation of accounts not only let consumers now allow premium content at low prices, but also reveal holes in platform design, such as limited multi -use plans or field -specific restrictions (Luo, Griffith, Liu, & Shi, 2020). To respond to these consumer behaviors, platforms have developed formalized solutions such as family or group subscription tiers, simultaneous login restrictions, and monitoring mechanisms aimed at curbing unauthorized sharing, illustrating the direct influence of user behavior on business model adaptation.

The literature also highlights the economic and strategic implications of subscription sharing. On one hand, it enables broader access to digital services, increasing consumer engagement and retention; on the other hand, it can undermine revenue streams and create compliance challenges for providers (Katz, Shapiro, & Varian, 2018). Some studies argue that subscription sharing functions as an informal marketing channel, promoting adoption among users who might not otherwise subscribe at full price, potentially converting them into paying customers over time (Kumar & Rajan, 2021). From a platform strategy perspective, balancing consumer accessibility with revenue protection is a persistent challenge, prompting experimentation with hybrid models that blend tiered access, usage-based charges, and enhanced account control features.

This insight from entertainment and media services provides a valuable conceptual basis for understanding similar behavior in AI platforms. Just as Netflix or Spotify users share membership to reach premium content and re -motts subscriptions, AI users have used collective member strategies to reduce personal expenses from AI users, especially in areas with high membership costs or international payments. This involves collecting subscriptions, sharing account information or relating to informal dealers who provide access to cheap prices locally. This practice suggests that consumer mechanized adaptation due to lack of prices is not unique to entertainment, but extends to any digital service distributed through the mother-in-law model including the AI platforms. (Luo et al., 2020; Katz et al., 2018). Understanding the parallels between entertainment subscription sharing and AI collective reselling offers insights into emerging market behaviors, the evolution of pricing strategies, and potential regulatory and ethical considerations for service providers seeking to maintain sustainable business models while addressing localized access challenges.

4. Digital Economy and Informal Markets in Algeria

Algeria’s digital economy is experiencing gradual development, which is characterized by an increase in the Internet and mobile connection. At the beginning of 2024, approximately 72.9% of the population, equal to more than 33 million users, internet access and mobile phone connection was almost universal. (Economic Researcher Review, 2025). This digital expansion has led to the emergence of e-commerce and fintech sectors, with the number of registered e-commerce businesses growing at an average annual rate of 92% since 2020 (UNCTAD, 2025). Despite these advancements, challenges persist, including regulatory gaps, infrastructure deficiencies, and low digital literacy, particularly in rural areas (Economic Researcher Review, 2025).

The informal economy remains a significant component of Algeria’s economic landscape, with estimates suggesting that more than one-third of all employment occurs within this sector (U.S. Department of State, 2024). This informal sector encompasses various activities, including unregistered online businesses and digital platforms offering goods or services without formal recognition (Algeria Press Agency, 2025). The government’s efforts to extend the tax net to income from unregistered online activities aim to formalize these operations and integrate them into the broader economy (Algeria Press Agency, 2025). The difference between digital economy and informal markets provides both opportunities and challenges. On the one hand, the digital economy has widespread access to goods and services, and promotes entrepreneurship and innovation. On the other hand, the spread of informal markets can prevent the development of a comprehensive regulatory structure, which presents challenges for taxation and consumer protection (U.S. Department of State, 2024).

In conclusion, while Algeria’s digital economy shows promise for economic diversification and growth, addressing the challenges associated with informal markets is crucial. Strengthening regulatory frameworks, improving digital infrastructure, and enhancing digital literacy are essential steps toward integrating informal digital activities into the formal economy, ensuring sustainable development in the digital age.