3 AI Monetization Strategies That Work

Here's What We Can Learn from Companies Like Open AI, Feedly, & Slack

Dear Readers,

Today, I'm diving into something that's been on my mind as I've been building my latest MVP product - how do different companies monetize their AI features? What are the different ways to make these features profitable while still being careful (since AI usage for LLMs like ChatGPT can lead to some scary fees if left unchecked).

I came across this quote from Andrew Ng a while back:

"The real value of AI lies not in what it can do, but in how we choose to sell it." 

Andrew Ng (Founder of Coursera)

This is of course meant also in a moral sense, but I also take it literally. How you choose to sell your feature matters. It should be good for the user, responsible, and also profitable to you as a business owner.

That being said, let's break down what's actually working in the market.

Types of Monetization Strategies

The AI pricing strategies (as of now at least) can be broken down into three major categories, from least typical to most typical:

Types of AI Monetization $

The AI-First Builders
These companies are building products where AI isn't just a feature, it's the entire foundation. Their product exists purely because of AI, and that's its main selling point.

The Premium Layer
This is where companies keep their core product intact but offer AI capabilities as a premium feature. Users only pay for AI if they specifically want it. This approach makes sense when the AI feature has clear value but comes with significant computing costs.

The Silent Integration
This is currently the most common approach. Companies are weaving AI capabilities right into their existing paid plans. Sometimes they keep the same price point, sometimes they bump it up a bit. Simple as that.

Now, let's look at how familiar companies are actually implementing each of these approaches.

Real-World Examples: OpenAI, Feedly, & Slack

OpenAI (ChatGPT) is a perfect AI-First Builder example. Their whole business is built around AI with a simple plan:

  • Free version with limits

  • Paid subscription option

  • Business API with pay-as-you-go pricing

Even with all their users, they're still playing with their prices to find what works best.

Feedly takes the Premium Layer route. Their RSS reader works fine without AI, but pay an extra fee you get their AI feature that sorts content, spots important stuff, and cuts through the noise. So, only customers who want AI features pay for them.

Slack went the Silent Integration way. They quietly added AI for things like summarizing conversations and smarter search into what you already pay for. No big fuss about it - just making their product better and stickier.

Three big companies, three totally different ways to sell AI.

How Do You Decide What To Do?

Which model to pick?

So how do you pick the right approach for your product? Here's what I've learned from watching these companies:

  1. Look at your users first. Are they already paying for your product? How much value would AI actually add to their workflow? This helps you decide if AI should be core, premium, or just blended in.

  2. Do the math on costs. AI can get expensive fast. Make sure you know your per-request costs before deciding to bundle it with existing plans.

  3. Test before committing. Start with a small beta group and watch how they use the AI features. This will tell you if users see enough value to pay extra.

  4. Keep it focused. The companies seeing real traction aren't trying to do everything with AI. They're solving specific problems really well.

For my own product, I'm leaning toward the Premium Layer approach - keeping the core product valuable on its own, with AI as a power-up for users who really need it.

Let’s Wrap it Up!

I hope this breakdown helps you think about how to monetize AI in your products.

I write about how we're building modern software, and I love to share tips, tricks, and tutorials for founders and techies. If you're interested:

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Got questions about AI monetization? Drop them in the comments below - I read every single one and would love to hear what you're working on!

I'd love to connect, always! Best of luck. 👩🏻‍💻