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Google makes its most powerful AI models pay-for-play as AI services struggle to turn users into customers

Half of all US consumers use AI services — but only a small fraction pay for them. Google is trying to shift the balance by giving users of its Gemini AI services reasons to become paying customers. Users are certainly reluctant to dip into their pockets. A quarter of US consumers use AI daily, but only 4.5% have an active paid subscription to ChatGPT, Gemini or Claude, according to research from…

Google makes its most powerful AI models pay-for-play as AI services struggle to turn users into customers

Google has adjusted its Gemini AI service pricing model, aiming to turn more users into paying customers. According to research by Andreesen Horowitz, only 4.5% of US consumers use AI services with a paid subscription, despite a quarter using them daily. As of October 9, non-paying users will only have access to the less powerful Gemini Flash Lite model, down from the previous Gemini Flash access.

This move targets the market for AI power users, with premium subscribers retaining access to Gemini Pro. With Claude gaining popularity over Gemini among consumers, Google seeks to capture the higher end of the market. However, it remains to be seen if users will be willing to pay the premium for enhanced AI capabilities.

Written by urgent.news from Computerworld's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at computerworld.com →

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