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AI monetization: the next level! 🚀

AI is no longer about demos and hype — it’s about who can turn usage into profit!



Almost a year ago, I wrote about the coming AI monetization war!


Since then, two shifts are impossible to ignore:


1️⃣ AI buyers now care more about business outcomes than the technology


2️⃣ AI vendors face pressure to monetize amid exploding compute costs


👉 OpenAI’s pricing experiments made this visible:


  • The $200 Pro plan looked expensive.

  • Yet even that tier struggles with profitability due to high usage costs.


In a recent analysis, Gary Bailey shows something even more striking: To reach a ~25% margin, OpenAI would need to more than double prices 🫨

That’s unlikely.

Why?


  • Competition is fierce

  • The fight to become the AI standard is still open

  • Penetration pricing remains the fastest way to scale adoption


Althouth is difficult to change the pricing levels a lot, changing the pricing logic instead could be the solution!

👉 The industry is debating how to do this:


  • Fixed SaaS subscriptions

  • Consumption-based pricing

  • Hybrid models


This shift will be slow and cautious.


But there’s another monetization path hiding in plain sight:


🎯 Advertising


The setup is ideal:


✔️ Users ask continuous, intent-rich questions

✔️ AI tools behave like next-gen search engines


That’s exactly how Google built a money machine.


OpenAI’s free and $8 tiers signal a move toward ads — confirming the direction.

This move isn’t about better AI models.

It’s about better monetization mechanics.


Will AI vendors become advertising companies?

Too early to say.


What’s certain:

The AI monetization war is still unfolding — and it will reshape the industry.

The pricing lesson is clear:


  • Great technology is the prerequisite for success

  • Monetization decides who survives and thrives


💡 As AI goes mainstream, pricing leads — technology supports 💡 

 



Interested in learning more about AI-Powered Price Optimization and Strategic Forecasting?



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