The Coming Cost of Convenience: AI Automation and Personal Services

I have reached the point that I am convinced AI tools will play a significant role in education and in our daily lives. The amounts of money companies are investing to develop and attract interest in their AI services is substantial and we have yet to recognize that we all will soon pay for these businesses in one way or another. It’s easy to forget that “free” services come with a cost, even if we don’t directly pay for them. Companies like Google and Amazon invest heavily in developing AI technology. By offering free services, they offset these investments through the data collected and opportunities to promote their other offerings. As AI progresses, developing and maintaining these complex systems will become more expensive. Companies will look to monetize AI directly to sustain continued innovation.

Some examples provide insights into what we might anticipate. Kahnmigo (the AI tutor now available to some users of the Kahn Academy) is presently priced at $9 per student per month. ChatGPT offers its best AI tool at $20 per month. I pay OpenAI for use of its API on a pay as I consume plan and pay significantly less than the $20 per month level, by using a lower-level system and paying based on the amount of use. Some tools I have recommended in the past (e.g., ChatPDF) as free up to a point and then expects payment if used extensively. So, the costs will likely vary based on the complexity of the AI system and extent of customization. Twenty dollars a month seems a reasonable estimate for individual services at this point. 

As with any new technology, finding the right balance between innovation and accessibility will be key. Through thoughtful regulation and competition within the marketplace, hopefully AI capabilities can remain affordable and available to all income levels. If companies get pricing right, AI services could enhance people’s lives in so many ways. Consumers may gripe about new fees, but ultimately may find the benefits outweigh the costs.

As an educator, I am concerned about equity issues schools will face in providing access to what I anticipate will become increasing use of AI. Consider the cost of Kahnmigo as an example. What are present investments in technology and what would be the consequence of adding another $100 per year per student fee. With all of the interest in AI, it is probably time to begin to consider the costs that will eventually become real. 

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