The shift towards paid AI services is also driven by the pressure on tech companies to demonstrate revenue growth and strong profit margins, especially amid a recent advertising slowdown. Ads may not work as well in the generative AI future, as AI chatbots providing straight answers to users leave less space for ads. Therefore, charging for new generative AI services is seen as a way to create new earnings and keep investors satisfied.
Key takeaways:
- Generative AI technology is expected to shift the trend of free internet services to paid subscriptions, as seen with Amazon's Alexa and potentially Google's new AI offerings.
- Running large language models for generative AI is currently very expensive, requiring substantial investment in hardware and resources.
- Traditional ad-supported models may not be as effective with generative AI, as AI chatbots providing direct answers leave less space for ads.
- Big tech companies are under pressure to demonstrate revenue growth and strong profit margins, and charging for new generative AI services could be a way to create new earnings streams.