Apple’s highly-anticipated artificial intelligence features could come with an equally high price tag.
Apple Intelligence is set to launch in two months, and analysts told CNBC that the tech giant could charge users up to $20 monthly for its premium AI tools. That’s on top of owning a suitably new Apple computer or iPhone to run the technology on (unlike, say, OpenAI’s ChatGPT app, which can be run off most phones).
Like other Big Tech players, Apple is prioritizing a push forward in AI — and the spending necessary to develop it — in the hopes that its bet will pay off big.
And, according to other experts, offering the software for free is a way to get at least some return on its investments.
“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,” said tech analyst Jacob Bourne at Emarketer, a sister company to Business Insider.
Although its other subscription services have been booming, according to Apple’s most recent earnings calls, Bourne said it should be mindful of the “crowded market” of monthly fees.
Apple already charges subscribers for Apple Music, Apple TV+, Apple Fitness+, and more. Customers can combine them by paying $19.95 a month for Apple One.
At its June Worldwide Developers Conference, the company showcased AI features like AI-generated emojis, a more intuitive Siri, and an image generator. During the introduction to Apple Intelligence, the company said that its full capabilities will roll out over the course of a year starting in the fall.
Still, it’ll be a balancing act if Apple wants people to pay for its AI tools, Bourne said.
He added, “A dual approach with both free and paid tiers could be the best strategy, allowing Apple to showcase its AI capabilities while monetizing advanced features and further bolstering its already thriving services business.”
Generative AI rivals, including Microsoft, Anthropic, and Midjourney, also charge monthly fees for premium features, but Apple has an advantage that they don’t: the hardware.
As long as they can “deliver seamless, ecosystem-integrated AI tools that outperform competitors’ offerings,” Apple can rely on its extensive user base to at least test Apple Intelligence on their devices.
It’s clear they have a loyal following, but Apple may have to really wow them if it wants them to pay for its AI.
