The Current State of Consumer AI, Part 3: Time Is Money (15-minute read)

The revenue model for consumer AI is moving beyond usage (Q) into the question of price (P). The key medium here is the user's time. Subscription models convert time into value, while advertising models convert time into ad inventory.

The advertising revenue opportunity for leading consumer AI apps is projected to be larger than that of subscription models. This is because AI apps are rapidly accumulating time and attention, the core raw material of internet businesses.

The key factors underpinning this advertising revenue growth are as follows:

• Explosive growth in total time spent within AI apps: Total time spent in generative AI apps has grown roughly 10x over the past two years.
• Increasing time spent per user: ChatGPT has seen time spent per user increase roughly 3x compared to early 2023, expanding its ad surface area.
• Strong search intent signals: ChatGPT queries provide stronger intent signals than traditional search, enabling higher ad pricing.

In particular, ChatGPT holds a dominant position, accounting for 68% of total consumer AI usage time. This concentration of attention suggests that ChatGPT could become the first large-scale AI-native advertising platform.