AI Mainstream: 58% Use Generative AI But Only 16% Pay for It

Generative AI has officially crossed into mainstream territory, with new research from Parks Associates revealing that 58% of US internet households now use AI tools—a significant jump from 47% just three months earlier. However, despite this rapid adoption surge, companies are struggling to convert usage into revenue, with only 16% of households paying for AI applications.

The research, based on surveys of over 8,000 US households, reveals a critical disconnect between AI adoption and monetization. While platforms like ChatGPT have seen explosive growth—reaching 38% household usage, up from 26% a year ago—most users stick with free versions rather than upgrading to premium services.

Key Market Insights

Security customers emerge as the most valuable AI segment:

• Security system owners use paid AI tools at twice the rate of average households
• 15% of security system owners currently pay for AI-powered enhancements
• With 41 million US households owning security systems, this represents over 12 million homes already engaged with paid AI solutions
• Security households account for roughly two-thirds of all paid AI users

Consumer trust remains a significant barrier:

• 30% of consumers are less likely to purchase products marketed as "AI-powered"
• This resistance is nearly double the share who say AI messaging increases purchase intent
• Clear utility and embedded value matter more than AI buzzwords

The Path Forward for AI Companies

Jennifer Kent, SVP & Principal Analyst at Parks Associates, emphasizes that success requires focusing on practical benefits rather than flashy features. "The winners in the next phase won't be those with the most features—they'll be the companies that deliver trusted, embedded intelligence inside ecosystems consumers already value."

For businesses looking to capitalize on AI adoption, the security and smart home sectors present the most immediate monetization opportunities. These customers have already demonstrated willingness to pay for AI enhancements and represent a concentrated, high-value segment.

The research suggests that while AI has achieved mainstream awareness, converting that awareness into sustainable revenue streams requires transparency, privacy protection, and clear service benefits rather than relying on AI-forward branding alone.

🔗 Read the full report from Parks Associates