Entitlement Management Solutions for AI Products: Build vs. Buy

Entitlement management solutions are designed to manage and enforce what customers can access and how much they can utilize within a product, separating this logic from the application and placing it between the product and billing systems. Unlike billing systems that calculate charges after usage, entitlement solutions regulate access in real-time, ensuring that access decisions are made before usage occurs. These systems differ from Role-Based Access Control (RBAC) by focusing on plan-based access rather than user roles, handling complexities such as multiple plans, feature access, credits, trials, and promotions, which must all be resolved into a single decision per request. As products grow, the complexity of managing entitlements increases, making it challenging to maintain consistency and efficiency if handled in-house, leading teams to consider third-party solutions like Stigg for their ability to manage entitlements with low-latency checks, configuration-driven pricing, and an append-only ledger for credits. These solutions allow for more flexible and efficient management of pricing and access logic, reducing the engineering burden and enabling seamless updates without code changes, ultimately enhancing scalability and reliability of the system.

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