Zuora Study Highlights Consumer Adoption Trends and Preferences for AI and GenAI Services
Early adoption rates for GenAI services point to clear opportunities and monetization strategies
As businesses navigate monetization strategies for these new technologies,
Key findings from the study include:
- While we are at the beginning of the consumer adoption curve for AI services and technologies, there are clear opportunities to drive future adoption across age groups: 50% of Gen Z respondents are currently using the technology, compared to 43% of Millennials, 20% of Gen X and only 9% of Boomers/Seniors. Overall, 28% of respondents say they are using these services. Another 27% of all respondents are not currently using GenAI services, but report an interest in trying them.
- Preference for usage-based models: More than half (53%) of all respondents say it is important to have a usage-based pricing model available for AI and GenAI services, compared to much fewer who say the same for an option for an annual recurring (29%) or monthly recurring (28%) charge for AI and GenAI services.
- Early adoption of AI services may be linked to a preference for outcome-based charges: Study results indicate a potential correlation between GenAI services adoption and interest in outcome-based charge models. Among those who use or are interested in using GenAI services, Gen Z reported both the highest adoption rate of GenAI services (50% of Gen Z) and the highest preference (23%) for outcome-based charges (compared to 17% of Millennials, 16% of Gen X, and only 8% of Boomers/Seniors). This type of usage-based pricing model charges customers based on the actual resolutions, or outcomes, produced by the service.
- Success hinges on aligning monetization with perceived value: Most respondents (70%) said they would not currently be willing to pay extra for embedded, GenAI-enabled features, however, early adopters may be more willing. Gen Z is the only age group that is essentially split down the middle in terms of willingness to pay (54% yes; 46% no) for added GenAI capabilities within an existing subscription (compared to Millennials: 43%, Gen X: 24%, Boomers/Seniors: 11%). By tapping into the preferences of those adopting the technology at higher rates, like Gen Z, vendors may be able to expedite value realization.
“The rapid evolution of AI services presents significant monetization opportunities and challenges,” said
To read the full study, visit here.
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