Google makes its most powerful AI models pay-for-play as AI services struggle to turn users into customers
Computerworld ·
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 Andreesen Horowitz . The survey found, however, that consumers are extremely engaged and that the top 10% of spenders account for roughly half of all observed spending. Now Google is changing the rules on who can use which Gemini models , limiting what users of its free service and its lowest-priced subscription tier can do. Starting from October 9, those without a paid subscription will only be able to access the less powerful Gemini Flash Lite model; previously, they could use Gemini Flash and had variable access to Gemini Pro . Subscribers to the $4.99/month Google AI Plus plan will still be able to use Gemini Flash, but will lose access to Gemini Pro. Subscribers to the most expensive plans, AI Pro ($19.99/month) and AI Ultra (from $99.99/month) will retain access to Gemini Pro. This is a clear change of direction for Google, looking to tap into the market for AI power users. The Andreessen Horowitz survey revealed that Claude had already overtaken Gemini among consumer users and Google now wants the higher end of the market. The question will be whether users are willing to pay that premium.
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 Andreesen Horowitz . The survey found, however, that consumers are extremely engaged and that the top 10% of spenders account for roughly half of all observed spending. Now Google is changing the rules on who can use which Gemini models , limiting what users of its free service and its lowest-priced subscription tier can do. Starting from October 9, those without a paid subscription will only be able to access the less powerful Gemini Flash Lite model; previously, they could use Gemini Flash and had variable access to Gemini Pro . Subscribers to the $4.99/month Google AI Plus plan will still be able to use Gemini Flash, but will lose access to Gemini Pro. Subscribers to the most expensive plans, AI Pro ($19.99/month) and AI Ultra (from $99.99/month) will retain access to Gemini Pro. This is a clear change of direction for Google, looking to tap into the market for AI power users. The Andreessen Horowitz survey revealed that Claude had already overtaken Gemini among consumer users and Google now wants the higher end of the market. The question will be whether users are willing to pay that premium.