Wednesday, April 23, 2025

Will AI Bring New Business Models?

One of the surprising internet developments has been the creation of new business models for technology firms, ranging from Alphabet and Meta to Apple. The most surprising development is ad-supported technology driven by content operations. 


Ad revenues are a major driver of revenues for Google, YouTube, Meta and even Amazon, for example. 

source: EMarketer, Seeking Alpha 


And one might dare to expect that at least one or two new models could develop with artificial intelligence as well, beyond subscriptions, pay-per-use, application programming interface licensing or insight-based monetization.


Indirect models likely also will be prevalent, as AI is expected to be used by most applications and processes, eventually. So indirect forms of revenue (customer acquisition, retention, profit margins, market share) might be the upside in many cases.


Should a major new business model emerge, we are likely to be taken largely by surprise.


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