AI Reaches 2 Billion Users Globally, but Monetization Lags with Only 3% Paying for Services

Artificial intelligence (AI) has reached a significant milestone with nearly two billion users globally, according to an estimate by U.S. venture capital firm Menlo Ventures. However, this vast user base translates into relatively modest annual earnings—only around $12 billion, mostly generated by OpenAI. This discrepancy highlights "one of the largest and fastest-emerging monetization gaps in recent consumer tech history," Menlo Ventures noted in their report, "2025: The State of Consumer AI." The report, based on a survey of 5,031 U.S. adults conducted by Morning Consult, reveals that 61% of U.S. adults had used AI in the past six months, and nearly one in five relies on it daily. Extrapolating these figures, Menlo Ventures estimates that globally, 1.8 billion people have used AI tools, with 600 million engaging daily. Despite the high usage, only 3% of users pay for consumer-grade AI services, indicating a strikingly low conversion rate. Menlo Ventures identified five key categories where AI is most used daily: writing emails, managing to-do lists, creating images, researching health topics, and tracking nutrition. Notably, 19% of U.S. adults use AI for writing emails, and 18% for managing to-do lists. These lower adoption rates suggest room for improvement and innovation in making AI more indispensable for users. The creative category, encompassing tasks like image creation, stands out as having the highest engagement and the most willingness to pay. Among regular AI users, 34% use AI for creating images, reflecting a growing demand for advanced creative tools. As AI makes it easier to produce polished content, the human element—such as taste and creativity—becomes crucial. The report notes that new tools like Higgsfield and Suno have seen rapid revenue growth due to their AI capabilities in image generation, audio production, and advanced design. Conversely, physical and mental health assistance and management are among the least-utilized applications of AI. Only 14% of U.S. adults use AI for health research, and 11% for tracking nutrition, out of the 71% and 46%, respectively, who generally engage in these activities. Trust is identified as the primary barrier in these domains, where handling highly personal information is essential. Companies combining AI's data intelligence with trusted human care teams are seen as best positioned to overcome this challenge and scale quality care. The survey also uncovered surprising trends in AI usage demographics. While Gen Z (ages 18-28) leads overall AI adoption, Millennials (ages 29-44) are the top daily users, defying the common assumption that younger users are the most engaged. Additionally, parents, particularly Millennial parents, emerge as unexpected power users, with 79% using AI regularly compared to 54% of non-parents. The main tasks parents use AI for include learning and understanding new topics, taking and organizing notes, and managing childcare. AI usage tends to increase as children grow older, aligning with the increasing complexity of parents' lives. This trend suggests that consumer AI adoption is driven by high-friction life moments rather than just age or income, presenting a valuable opportunity for companies to target specific life stages. Industry insiders and experts see this significant user base and low monetization rate as a double-edged sword. On one hand, it represents a massive untapped market potential. On the other, it underscores the need for innovative solutions to convert casual users into paying customers. Scale AI’s recent strategic investment from Meta, which values the company at $29 billion, exemplifies the tech industry's recognition of AI's potential. With Meta’s investment, the focus will likely shift towards enhancing user experience and building trust in AI applications, especially in critical areas like health and finance, where user engagement currently lags. Menlo Ventures’ report highlights the growing importance of integrating AI into daily life and the critical role of user trust and specialized tools in achieving widespread adoption. As AI continues to evolve, companies that address these gaps and provide high-value, user-friendly solutions are poised to capitalize on this enormous market opportunity.