AI Transforms Subscriptions, Monetization, ISG Says
Enterprises seek adaptable, easily integrated platforms with AI-enabled features to meet customer demand for new purchasing options, new research says
The ISG Buyers Guides™ for Subscription Management, produced by
“Enterprises are implementing subscriptions, and ways of monetizing digital and physical services, that require more intelligent and flexible software,” said
Subscription management software enables companies to deliver a seamless subscription experience to business or consumer customers, from selection through billing, payment and fulfillment. This requires support for automation, analytics, pricing and loyalty programs, often across diverse monetization methods, including flat-fee, usage-based and one-time sales, the research finds.
These systems enable diverse business models through either built-in capabilities or integration with enterprise resource planning (ERP), customer relationship management (CRM) and third-party platforms, ISG finds. They must smoothly integrate customer, product, pricing and vendor data to align contracts and orders with existing accounting systems. Companies adding subscriptions to a traditional one-time sales model need to integrate a new platform, and whether that becomes the consolidated subscription and billing hub or simply feeds data into legacy systems, interoperability is essential.
Revenue allocation is a critical, often overlooked function of subscription management, especially in B2B use cases, the research finds. Enterprises that partner with third-party suppliers of complementary products or services, such as travel companies that pay commissions to airlines and hotels, need to properly account for subscription revenue owed to those partners. They require software platforms that can use complex revenue allocation formulas tied to the pricing models used for customer charges.
Subscription management solutions increasingly use predictive and generative AI to streamline operations and enhance productivity, ISG finds. Use cases for AI include recommending collection strategies for overdue accounts, detecting expired cards or invalid addresses and introducing virtual assistants. Companies are also gradually adopting AI-powered pricing optimization and bundle recommendation features.
For its 2025 Buyers Guides™ for Subscription Management, ISG evaluated software providers across five platform categories — Subscription Management, B2B Subscription Management, B2C Subscription Management, Subscription Billing and Subscription Platforms — and produced a separate Buyers Guide for each. A total of 27 providers were assessed: Advantagecs,
The Overall Leaders of the 2025 Buyers Guides™ for Subscription Management were the following:
Subscription Management:
B2B Subscription Management:
B2C Subscription Management:
Subscription Billing:
Subscription Platforms:
“Enterprises need subscription solutions that not only meet current needs but can scale for the future,” said
The ISG Buyers Guides™ for Subscription Management are the distillation of more than a year of market and product research efforts. The research is not sponsored nor influenced by software providers and is conducted solely to help enterprises optimize their business and IT software investments.
Visit this webpage to learn more about the ISG Buyers Guides™ for Subscription Management and read executive summaries of each of the five reports. The complete reports, including provider rankings across seven product and customer experience dimensions and detailed research findings on each provider, are available by contacting
About
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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