Ai Platform

How Profitable Is An Ai Platform? (Updated for 2024)

Pat Walls

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Updated: October 9th, 2024

How Profitable Is An Ai Platform? (Updated for 2024)

So you want to start an ai platform?

And the first question that came to your mind was, “well, are ai platforms actually profitable?”

With a market size of $1.8B - there’s plenty of business to go around.

Especially considering:

You could start a ai platform with as low as $19
Based on our data, ai platforms generate an average of $4.82M per year
You could see gross margins as high as 70% with ai platforms

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a ai platform.

Let’s dive in!

Is an ai platform profitable?

Yes, an ai platform is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $4.82M per year with an estimated gross margin of 65%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your ai platform.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your ai platform is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an ai platform worth it?

If you’re wondering if a ai platform is worth it, the answer is a big YES. With ai platforms, you have the potential to earn $4.82M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $1.8B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a ai platform to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful ai platforms case studies.

Examples Of Profitable Ai Platforms

Here are a few examples of profitable ai platforms, and a few more details about them:

1. Yellow AI ($36M/year)

Raghavendra Kumar Ravinutala and Jaya Kishore Reddy, co-founders of Yellow.ai, conceived their idea during the smartphone boom in India post-2011.

Observing the potential for user engagement through mobile apps, they identified a gap in connecting these apps with enterprises.

Despite conversational AI being a nascent field in the country, Raghu and Kishore envisioned creating a bridge between mobile apps and enterprise systems, laying the foundation for their innovative product.

Is it profitable? Yes
How much money it makes: $36M/year

How Raghu Ravinutala Built Yellow AI to $40M ARR

Yellow.ai provides a case study on growing from a side project to a full-scale AI enterprise generating $36 million annually through AI-powered chatbots and strategic marketing techniques, making it a must-read for aspiring entrepreneurs.

Read this case study

Read by 482 founders

2. AudioPen ($180K/year)

In March 2023, Louis was experimenting with AI APIs and built four tiny products in a week. One of them, AudioPen, quickly resonated with users on Twitter, now generating $15,000 per month.

Is it profitable? Yes
What's the gross margin? 70%
How much money it makes: $180K/year
How much did it cost to start: $32

The App I Built In 12 Hours Now Makes $15K/Mo

A founder shares how he built AudioPen.ai, a tool that transcribes voice notes, generating $15,000 monthly with minimal costs and no paid marketing, highlighting the importance of focusing on the product, word of mouth, and personal communication with users for sustainable growth.

Read this case study

Read by 14,587 founders

3. Rytr ($60K/year)

Abhi, the founder and CEO of a startup platform and business incubator, came up with the idea for Rytr, an AI writing assistant, after realizing the pain points of content generation for small teams. With the potential he saw in GPT3 technology, Abhi set out to create an intuitive AI assistant that offered the best quality outputs, launching in April 2021. Since then, Rytr has become a market leader with 300,000+ customers worldwide and plans for future growth.

Is it profitable? Yes
How much money it makes: $60K/year
How much did it cost to start: $25K

I Built A Simple AI Writing Tool That Makes $60K/Year

Rytr, a new AI writing assistant developed by a startup platform and business incubator, has become a market leader, serving over 300,000 customers across the world and doing seven figures in ARR.

Read this case study

Read by 6,856 founders

Learn more about starting an ai platform:

Where to start?

-> How much does it cost to start an ai platform?
-> Pros and cons of an ai platform

Need inspiration?

-> Other ai platform success stories
-> Marketing ideas for an ai platform

Other resources

-> Ai platform tips

How much can you make with an ai platform?

With a ai platform, you can make an average of $4.82M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $19. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a ai platform make a week?

Based on our data, average weekly revenue for a ai platform ranges around $100K. As such, you could see monthly revenues of $402K.

To know if your ai platform achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your ai platform.

How much do ai platforms owners make?

The income of an ai platform owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established ai platform is about $100K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as an ai platform owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Ai Platform Profit Margins

Generally speaking, an ai platform can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an ai platform, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, ai platform owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, ai platform owners can ensure long-term sustainability and profitability for their business.

Ai platform owner salary

The salary of an ai platform owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established ai platform, in a prime position, might see an average weekly salary around the ballpark of $65.3K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a ai platform may be a promising business to start - but the success of your ai platform mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable ai platform.

Part of

Starting An Ai Platform: Everything You Need To Know

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