Apple reportedly won't charge you for AI features for the first few years

Apple’s highly anticipated AI features, known as Apple Intelligence, might be free for users for the foreseeable future, according to Bloomberg’s Mark Gurman. In his latest Power On newsletter, Gurman suggests that it could take up to three years before Apple develops an AI product compelling enough to warrant a charge.

This comes as a bit of a surprise, given the current landscape where many AI companies are quick to monetize their offerings. In fact, last week we highlighted speculation from industry experts claiming that Apple could charge $20 a month from users for some advanced AI features. However, Apple seems to be taking a more patient approach, focusing on refining and expanding their AI capabilities before asking users to open their wallets.

Gurman speculates that Apple’s long-term strategy might involve an “Apple Intelligence+” subscription service, similar to how iCloud operates. Just as iCloud offers 5GB of free storage with paid tiers for additional features, Apple Intelligence could follow a freemium model. Basic AI features would remain free, while more advanced capabilities could be locked behind a paywall.

It’s worth noting that Apple Intelligence is still in its infancy. The first set of features are only partially available in the iOS 18.1, iPadOS 18.1, and macOS Sequoia 15.1 betas. While some improvements to Siri, smart replies, and photo features are already in testing, more advanced capabilities like Image Playground and Genmoji aren’t expected until late 2024 or even 2025.

Apple also faces the challenge of expanding these features globally, particularly to markets like China and the European Union. This rollout process, combined with the need to refine and expand the AI’s capabilities, explains why it might take until 2027 or beyond for Apple to have a robust, chargeable product.

When Apple does eventually start charging for AI features, it could be integrated into existing subscriptions. Some analysts speculate that Apple Intelligence might be bundled into iCloud+ plans or included in the Apple One subscription package, potentially at a price point between $10 and $20 per month, as noted above.

For now, Apple fans can look forward to testing out the company’s AI features without worrying about additional costs. It seems Apple is playing the long game, prioritizing bringing more users on board before it switches to a monthly fee. There’s a high chance users would like to retain features after they’ve used them consistently for years, rather than shell out money for something they’ve not used.