In the next year or two, phone brands may start charging users for advanced AI features.
AI apps and features are getting all the attention, and brands are trying to make them appeal to consumers. And this is also the case in the smartphone industry, where Google and Samsung are already introducing AI-centric features thanks to the development of major language models.
But it must be said that all AI features are coming to premium devices like Pixel 8/8 Pro and Galaxy S24. So most of you expect companies to offer these features for free, especially when you think owning a device is high enough.
But the realistic part of the AI boom is that companies cannot sustain their business if they offer AI capabilities, at least not all of them for free. Samsung recently talked about the need for a level of AI capabilities that could be paid for, and it’s likely that other brands will have a similar plan when people decide to spend big on these devices.
Apple is probably waiting in the wings to see how its competitors decide to carve out the AI segment in the market, and even as the iPhone maker has a more robust and clear plan to offer its AI features without compromising user privacy. This year’s release of iOS 18 could give us a glimpse into the future of artificial intelligence in Apple’s world.
But the bigger question is the need to charge for AI features, and that can be answered by the dynamics of how AI works.
These companies need to invest billions in high-powered computing systems that can help their AI learn, evolve, and perform at optimal levels. Spending billions with no return is never a sound business model. And like everything else we’ve seen in recent years, brands are looking to invest in customer acquisition for their AI systems.
Once they realize the benefit of using these features, brands can eventually name their prices to keep these customers addicted to the free, more advanced AI chops. The best example of this is ChatGPT, which started its journey by getting more people to use its services and then launched the Plus version, which offers more personalized tools and heavier data processing.
So how soon can you expect the free AI bonanza to end? Experts believe that we could quickly shift the market to a non-free AI ecosystem within the next year or even two.