Ai Based Business Solution

How Profitable Is An Ai Based Business Solution? (Updated for 2024)

Pat Walls

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Updated: September 13th, 2024

How Profitable Is An Ai Based Business Solution? (Updated for 2024)

So you want to start an ai based business solution?

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

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

Especially considering:

You could start a ai based business solution with as low as $50
Based on our data, ai based business solutions generate an average of $669K per year
You could see gross margins as high as 50% with ai based business solutions

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 based business solution.

Let’s dive in!

Is an ai based business solution profitable?

Yes, an ai based business solution 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 $669K per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

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

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

Is an ai based business solution worth it?

If you’re wondering if a ai based business solution is worth it, the answer is a big YES. With ai based business solutions, you have the potential to earn $669K 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 based business solution 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 based business solutions case studies.

Examples Of Profitable Ai Based Business Solutions

Here are a few examples of profitable ai based business solutions, and a few more details about them:

1. Eightify ($540K/year)

Alex Kataev got the idea for Eightify after experiencing frustration with lengthy videos. At the same time, he realized the potential of AI, particularly GPT-3, to streamline content consumption.

He identified the need for a tool that could summarize videos quickly and efficiently, leading to the development of Eightify.

Is it profitable? Yes
What's the gross margin? 50%
How much money it makes: $540K/year
How much did it cost to start: $23K

This Site Gets 70M+ Visitors Per Year Using AI

Learn how Alex Kataev turned frustration with lengthy YouTube videos into a thriving business with Eightify, attracting over 100,000 users and generating an average of $45K per month with a freemium pricing model.

Read this case study

Read by 701 founders

2. Zeeg AI ($48K/year)

Enema Onojah John, a former mechanic turned digital marketing consultant, founded Zeeg AI in March 2023 to streamline content creation for businesses. Within just three months, Zeeg AI exceeded 12,000 active users and generated over $4,000 in monthly revenue.

Is it profitable? Yes
How much money it makes: $48K/year
How much did it cost to start: $3K

My AI-Writing Tool Crossed 12K Users And $4K In MRR

Zeeg AI is an all-in-one AI software solution that solves multiple daily problems for businesses and marketers, with features including copywriting, content marketing, SEO keyword research, AI speech-to-text, text-to-speech, and image editing, and has already gained over 12,000 active users and generated $4,000 in monthly revenue in just three months.

Read this case study

Read by 1,548 founders

3. Truein ($480K/year)

Ankit Tanna, the founder of Truein, came up with the idea for his business after realizing the pain points in attendance management for contractual and remotely deployed staff. He noticed that existing solutions lacked controls, transparency, and employee experience, so he leveraged AI and face recognition technology to create Truein. The business is currently generating an impressive $40,000 in monthly recurring revenue (MRR).

Is it profitable? Yes
How much money it makes: $480K/year
How much did it cost to start: $50

We Built A $40K/Month AI Face Recognition Based Attendance Software [From India]

Truein is a face recognition-based attendance solution that uses AI technology to address attendance use cases for contractual and distributed staff, boasting an MRR of $40,000 and targeting low and medium skill enterprise customers.

Read this case study

Read by 3,832 founders

Learn more about starting an ai based business solution:

Where to start?

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

Need inspiration?

-> Other ai based business solution success stories
-> Marketing ideas for an ai based business solution

Other resources

-> Ai based business solution tips

How much can you make with an ai based business solution?

With a ai based business solution, you can make an average of $669K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $50. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a ai based business solution make a week?

Based on our data, average weekly revenue for a ai based business solution ranges around $13.9K. As such, you could see monthly revenues of $55.8K.

To know if your ai based business solution 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 based business solution.

How much do ai based business solutions owners make?

The income of an ai based business solution 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 based business solution is about $13.9K. 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 based business solution owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Ai Based Business Solution Profit Margins

Generally speaking, an ai based business solution can expect profit margin of around 83%. 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 based business solution, 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 based business solution 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 based business solution owners can ensure long-term sustainability and profitability for their business.

Ai based business solution owner salary

The salary of an ai based business solution 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 based business solution, in a prime position, might see an average weekly salary around the ballpark of $11.6K.

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

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

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Starting An Ai Based Business Solution: Everything You Need To Know

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