Report Reveals Tech Firms are Missing Revenue as 97% of Consumers Access AI for Free

A report from Menlo Ventures reveals that approximately 1.8 billion consumers have used AI tools, with a third engaging daily, yet nearly all utilize free versions. This presents a significant revenue opportunity for AI firms, which face substantial capital expenditures. According to investor Shawn Carolan, converting users to paid subscriptions could be achieved by enhancing features such as assisted memory and enabling AI to manage transactions. If all users paid a $20 monthly fee, the potential market could reach $432 billion, compared to the current $12 billion. Carolan suggests the key lies in maintaining free access while monetizing through alternative methods, such as affiliate fees and targeted advertisements. AI’s capacity for specificity and historical user data could enhance the effectiveness of such ads, offering promising pathways to revenue generation.

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