Synthetic intelligence (AI) has reached a tipping level. Folks have adopted AI at an unprecedented scale, with nearly two billion customers worldwide, in accordance with an estimate by the US enterprise capital agency Menlo Ventures.
And but, little or no cash is being made, maybe solely $12 billion yearly, with most of that determine accounted for by OpenAI.
(Disclosure: Ziff Davis, ZDNET’s father or mother firm, filed an April 2025 lawsuit towards OpenAI, alleging it infringed Ziff Davis copyrights in coaching and working its AI methods.)
The distinction between the big variety of customers and the small quantity being earned constitutes “one of many largest and fastest-emerging monetization gaps in latest client tech historical past,” mentioned Menlo Ventures.
The report, “2025: The state of client AI,” written by Shawn Carolan, Amy Wu, C.C. Gong, Sam Borja, with unspecified assist from Anthropic’s Claude Sonnet giant language mannequin, relies on a survey performed within the US in April for Menlo Ventures by the agency Morning Seek the advice of, with the participation of 5,031 US adults.
The survey discovered that 61% of US adults had used AI within the prior six months, and “almost one in 5 depend on it day-after-day.”
The Menlo Ventures workforce extrapolated these US-based figures to conclude that as many as 1.8 billion folks have used AI instruments globally, with as many as 600 million folks “partaking day by day” with AI. The researchers adjusted world figures to account for worldwide variance in web entry and age distribution, and variance in AI adoption charges by area.
On the similar time, the workforce extrapolated monetary figures primarily based on media stories suggesting OpenAI is producing $10 billion in income per 12 months, with “roughly 800 million month-to-month lively customers” and a ChatGPT Plus subscription worth of $20 per thirty days, implying roughly 5% of customers pay for premium entry.
General, solely 3% of persons are paying to make use of consumer-grade AI choices, they famous — “a strikingly low conversion fee.”
The that means of that disparity between utilization and paying for issues is that there’s a giant “white area,” the authors mentioned. That area is a chance to construct issues that folks will gravitate towards, and for which they may even pay.
The authors recognized “5 classes of day by day life” wherein AI is most used. These classes embody “19% of US adults use AI to assist write emails,” whereas “one other 18% depend on it to handle to-do lists.”
These are comparatively low charges of adoption, they noticed, which suggests to the authors, once more, that there’s area for brand spanking new services and products.
“AI is helpful all over the place, however there’s nonetheless an extended strategy to go to on a regular basis adoption, signaling alternative for brand spanking new merchandise to transform informal use earlier than day by day behavior is locked in,” the report mentioned.
No shock, there is a greater proportion for sure actions amongst those that are common AI customers. For instance, those that “routinely have interaction in a selected exercise” have a tendency to hold out the duty of “creating photographs” by 34%.
In truth, the “artistic” class of AI use, together with picture creation, is changing into essential for AI customers. These creativity-focused duties additionally current a possibility for brand spanking new services and products.
“The artistic class is more and more AI-native; it is the place shoppers most frequently undertake specialised instruments and present a better willingness to pay,” the report mentioned.
“Because it turns into simpler to supply polished content material, style — the human eye for what is nice, contemporary, or attention-grabbing — turns into the important thing differentiator.”
The report continued: “With new picture and video fashions rising continually, customers care much less about which software they use and focus extra on the best way to management, edit, and refine what AI generates.”
The authors cited some newer instruments with AI capabilities, corresponding to Higgsfield and Suno, that “have seen explosive income development as customers willingly pay for picture era, audio manufacturing, and superior design.”
On the different finish of the spectrum, bodily and psychological well being help and administration are among the many least-used roles for AI. Amongst US adults, solely 14% use AI to analysis well being matters, out of a complete of 71% of respondents who usually analysis well being matters.
And out of the 46% for whom monitoring vitamin is a daily behavior, solely 11% use AI for the duty.
“[T]hese numbers paint a stark image: Bodily and psychological well being actions present a number of the lowest AI adoption charges amongst US adults,” the authors wrote. “The bar is excessive for options that deal with extremely private info and contact on delicate matters. On this area, belief is the true frontier.”
Nevertheless, the workforce concluded that, as soon as once more, that hole is a chance.
“Firms that mix AI’s knowledge intelligence with trusted human care groups are greatest positioned to earn affected person belief, match insurance coverage fashions, and scale high-quality care.”
The survey additionally included attention-grabbing factors on the age breakdown of AI use. It revealed that Millennials are the highest day by day customers of AI, greater than Gen Z customers, which appeared to have shocked the authors.
“Whereas Gen Z (ages 18-28) leads general AI adoption as anticipated, Millennials (ages 29-44) emerge as energy customers, reporting extra day by day utilization — flipping the everyday ‘youthful = greater utilization’ sample.”
Additionally, dad and mom transform “the sudden energy customers,” which is “some of the stunning” findings, the authors mentioned.
Greater than three-quarters (79%) of oldsters use AI commonly, versus 54% of non-parents. The analysis steered dad and mom are “turning to AI for on a regular basis assist,” particularly Millennial dad and mom, who’re “of their prime working years.”
The highest duties accomplished by dad and mom utilizing AI are “studying/understanding new matters” (28%), “taking and organizing notes” (26%), and “managing childcare” (34%).
General, utilization rises, on common, as dad and mom’ youngsters develop up, which is reflective of accelerating complexity in dad and mom’ lives, one more space of alternative, the authors concluded.
“The adoption patterns we see amongst dad and mom present that client AI adoption follows life-stage complexity extra than simply age or earnings,” they wrote.
“This factors to an adoption curve formed by high-friction ‘life moments’ that savvy corporations can goal as wedges to construct lasting habits.”
