Galaxy AI will become pay-as-you-go in 2026
With the recent launch of the Galaxy S24 series, Samsung has not only unveiled its latest high-end smartphones, but also showcased a range of Galaxy AI features. This cutting-edge technology that utilizes artificial intelligence capabilities was unveiled at the Galaxy Unpacked event. There, they emphasized that it is included in some models for a limited period, with a subtle hint of the possibility of future additions. With the smartphone market in a slump, Samsung's move to monetize AI could be a strategic source of revenue.
The hype around Galaxy AI
The launch of the Galaxy S24 series was primarily an opportunity for Samsung to showcase all the artificial intelligence features unified under the Galaxy AI banner. According to the brand's website, these tools will be free for a limited period of time only.
There is very little room left for software in the presentation of Samsung's new top-end smartphones. The main purpose of the Galaxy Unpacked event was to showcase new features dubbed Galaxy AI. This is a series of artificial intelligence-enhanced features that will be available for free on a limited number of models.
However, according to a footnote on Samsung's official website, these features may soon become paid. The message, which can still be found on the brand's Canadian website, reads, "Galaxy AI features will be available for free until the end of 2025 on supported Samsung Galaxy devices."
Patrick Chomet, Samsung's head of customer experience, did mention at the time the possibility of charging for some AI-related features along with basic functions (instant translation tools, etc.).
"There could be additional services added to Galaxy AI features, such as from third parties, that users will be able to pay for. But we haven't gotten to that point yet," he cautiously suggested at the end of Galaxy Unpacked.
Given the operational costs and ongoing lawsuits, monetizing artificial intelligence is becoming a major challenge. Microsoft just launched its service that enables generative AI in Word, Excel and PowerPoint tools. If Samsung follows suit, it will be a new revenue stream for the South Korean giant in the smartphone market, which has been in decline for the past two years.
For now, features such as generative photo editing, instant call transfer and automatic document synthesis will be available for free on all Galaxy S24 series models when they are released on January 31, 2024.
As Samsung introduces the Galaxy S24 series with its advanced artificial intelligence features, a transformation is looming in the tech giant's strategy. While current offerings including generative photo retouching and instant call transfer will be free of charge, official sources are talking about a future shift to a paid basis.
The evolution of artificial intelligence monetization already seen in Microsoft's subscription model hints at a new frontier for Samsung, providing an opportunity to balance the challenges of market dynamics and legal complexities. Going forward, Samsung may explore different revenue streams through artificial intelligence monetization, potentially changing the landscape of the smartphone industry.