Artificial Intelligence Business

How Profitable Is An Artificial Intelligence Business? (Updated for 2024)

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Updated: October 6th, 2024

How Profitable Is An Artificial Intelligence Business? (Updated for 2024)

So you want to start an artificial intelligence business?

And the first question that came to your mind was, “well, are artificial intelligence businesses actually profitable?”

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

Especially considering:

You could start a artificial intelligence business with as low as $2
Based on our data, artificial intelligence businesses generate an average of $720K per year
You could see gross margins as high as 95% with artificial intelligence businesses

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 artificial intelligence business.

Let’s dive in!

Is an artificial intelligence business profitable?

Yes, an artificial intelligence business 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 $720K per year with an estimated gross margin of 90%, 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 artificial intelligence business.

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 artificial intelligence business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an artificial intelligence business worth it?

If you’re wondering if a artificial intelligence business is worth it, the answer is a big YES. With artificial intelligence businesses, you have the potential to earn $720K 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 artificial intelligence business 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 artificial intelligence businesses case studies.

Examples Of Profitable Artificial Intelligence Businesses

Here are a few examples of profitable artificial intelligence businesses, and a few more details about them:

1. aiCarousels ($60K/year)

On the brink of losing his job, Fernando Pessagno, an Argentinian product designer, embarked on a 10-day #buildinpublic challenge to create aiCarousels.com, a tool that now generates $5,000 MRR, helping non-designers craft social media carousels using AI.

Is it profitable? Yes
What's the gross margin? 95%
How much money it makes: $60K/year
How much did it cost to start: $0

I Accidentally Built A SaaS in 10 Days & Quit My 9-5

Discover how an Argentinian product designer turned an accidental 10-day project into aiCarousels.com, an AI-powered social media carousel generator now boasting $5,000 in monthly recurring revenue (MRR), with minimal design skills and no formal programming education.

Read this case study

Read by 7,305 founders

2. Imagined with AI ($54K/year)

Sabatino, a full-stack freelance developer and head of development at Craftzing, became interested in the AI revolution happening and trained his first model after playing around with Google Colabs. During a city trip to New York, he and his girlfriend Silke came up with the idea for AI-generated portraits, which led them to launch Imagined with AI. Within 24 hours of launching their MVP, they sold their first AI-generated portraits and have since attracted customers from over 25 countries, generating over 234,000 unique images to date.

Is it profitable? Yes
How much money it makes: $54K/year
How much did it cost to start: $0

Our AI Image Generator Made $10K In Just 6 Weeks

Imagined with AI generates unique, AI-generated portraits in various styles that has helped generate over 234,000 unique images to date, and is used by customers in over 25 countries.

Read this case study

Read by 4,293 founders

3. Mumu ($1.8K/year)

Wilbert, a software engineer from Indonesia, came up with the idea for Mumu while struggling to find emojis on his Mac. Realizing there was room for improvement, he created a simple landing page and gathered feedback from a small group of beta users. After launching and receiving overwhelming success on Product Hunt, Mumu has exceeded Wilbert's revenue expectations and continues to attract and retain customers through transparency, frequent updates, and excellent customer service.

Is it profitable? Yes
How much money it makes: $1.8K/year
How much did it cost to start: $200

On Developing A Better Emoji Picker For Mac And Getting Featured On Product Hunt

Indonesian software engineer Wilbert created Mumu, an emoji picker for macOS, which hit 10x his target revenue when he launched it recently, generating around $1,600 in total revenue, by designing and prototyping in Xcode and Figma, making a simple landing page to gain an initial beta launch momentum, and building in public to retain customers.

Read this case study

Read by 6,876 founders

Learn more about starting an artificial intelligence business:

Where to start?

-> How much does it cost to start an artificial intelligence business?
-> Pros and cons of an artificial intelligence business

Need inspiration?

-> Other artificial intelligence business success stories
-> Marketing ideas for an artificial intelligence business

Other resources

How much can you make with an artificial intelligence business?

With a artificial intelligence business, you can make an average of $720K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $2. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a artificial intelligence business make a week?

Based on our data, average weekly revenue for a artificial intelligence business ranges around $15K. As such, you could see monthly revenues of $60K.

To know if your artificial intelligence business 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 artificial intelligence business.

How much do artificial intelligence businesses owners make?

The income of an artificial intelligence business 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 artificial intelligence business is about $15K. 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 artificial intelligence business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Artificial Intelligence Business Profit Margins

Generally speaking, an artificial intelligence business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an artificial intelligence business, 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, artificial intelligence business 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, artificial intelligence business owners can ensure long-term sustainability and profitability for their business.

Artificial intelligence business owner salary

The salary of an artificial intelligence business 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 artificial intelligence business, in a prime position, might see an average weekly salary around the ballpark of $13.5K.

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 artificial intelligence business may be a promising business to start - but the success of your artificial intelligence business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable artificial intelligence business.

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Starting An Artificial Intelligence Business: Everything You Need To Know

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