Two months from now, Apple Intelligence is expected to emerge, and experts told CNBC that consumers may have to pay up to $20 a month for Apple’s premium AI features. To use the technology, you also need to have a sufficiently new Apple computer or iPhone (unlike, say, OpenAI’s ChatGPT software, which can be run off most phones).
Apple, like other major tech companies, is placing a high priority on the advancement of AI and the expenditure required to build it in the hopes that its gamble will be well rewarded. Furthermore, other experts claim that giving out the software is a means to at least partially recoup its costs.
Tech analyst Jacob Bourne at Business Insider’s sister business Emarketer stated, “Apple’s consideration of a paid subscription model for premium Apple Intelligence features is a strategic move to offset the substantial costs of AI development.”
According to Apple’s most recent earnings calls, its other subscription services have been doing quite well; nevertheless, Bourne warned that it should be aware of the “crowded market” for monthly subscriptions. Apple currently charges a subscription fee for services like Apple Fitness+, Apple TV+, and Apple Music. By subscribing to Apple One for $19.95 a month, customers can combine both.
The business unveiled AI technologies like image generation, more user-friendly Siri, and AI-generated emojis at its June Worldwide Developers Conference. The business stated that Apple Intelligence will roll out all of its features over the course of a year, beginning in the autumn, at the launch. However, according to Bourne, Apple will need to strike a balance if it wants users to pay for its AI technologies.
He stated, “A dual approach with both free and paid tiers could be the best strategy, allowing Apple to showcase its AI capabilities while monetising advanced features and further bolstering its already thriving services business.” Apple has an edge over rivals in the generative AI space, such as Microsoft, Anthropic, and Midjourney, in that they do not require a monthly fee for premium capabilities.
Apple can count on its large user base to at least test Apple Intelligence on their devices, if they can “deliver seamless, ecosystem-integrated AI tools that outperform competitors’ offerings.” Although it’s evident that they have a devoted fan base, Apple could need to go above and beyond to convince them to pay for its AI.
