The generative AI revolution is expected to be monetized, although the exact methods are still uncertain. Companies like Microsoft and OpenAI, who own the foundational AI models, are likely to charge others for using them for experiments and new applications. If successful, this could lead to the emergence of new businesses based on advertising and fees/subscriptions. However, the high computing power required for advanced generative AI services means that big cloud providers like Amazon, Microsoft, and Google will also benefit. Partnerships between AI companies and consulting firms are being formed to drive monetization, with early deployment experiments planned in customer service, marketing, and finance. Software-as-a-service platforms are also incorporating AI enhancements to attract paying customers. However, there is skepticism about AI becoming its own independent business, as it is more likely to be integrated into existing platforms and tools. The AI boom follows a similar trajectory to previous tech explosions, with profits initially going to the providers themselves.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Generative AI’s money game | Monetization of generative AI revolution | Emergence of new businesses | Potential revenue and profits |
| Winners: owners of foundational models | Revenue from charging others to use AI models | Broader applications of generative AI | Success in applying AI to commercial problems and consumer desires |
| AI boom benefits big cloud providers | Windfalls for Amazon, Microsoft, and Google | Increased market dominance | Costly computing power and demand for AI services |
| OpenAI monetization partnership | Early deployment experiments in various industries | Commercialization of OpenAI technologies | Drive for monetization and new business opportunities |
| AI enhancements as SaaS offerings | Quick path to enrolling new paying customers | Increased adoption of AI in platforms | Generating new revenue streams |
| AI as a feature in existing platforms | Widely incorporated into existing tools and industries | AI becomes a common business component | Integration of AI into existing systems |
| AI chat’s impact on search advertising | Disruption of search advertising | Uncertain integration of ads with AI chat | Potential challenges in mixing ads with useful information |
| AI providers as the biggest beneficiaries | Revenue and outsourcing risks to startups and early adopters | Capitalizing on current demand for AI | Immediate revenue opportunities and risk distribution |