Some Apple Intelligence AI features could cost up to $20, predict analysts.

• Analysts informed CNBC that Apple may charge its users up to $20 for its advanced AI features in order to increase the growth of its profitable services business.
• Apple Intelligence, the company's upcoming AI system, will be introduced on some devices later this year.
• Technology firms often charge for their AI offerings, such as OpenAI's subscription fee for advanced ChatGPT features and Microsoft's AI Copilot tool.

The company may charge its users up to $20 for its advanced artificial intelligence features, according to analysts, as it aims to increase revenue from its services business.

Apple Intelligence, the company's upcoming AI system, will be introduced on some devices later this year.

Apple unveiled its AI system in June, promising an enhanced Siri voice assistant and features such as email and image generation. Although these features will be introduced gradually, with some regions initially excluded, analysts speculated that Apple could charge for the more advanced apps through a subscription model.

According to Neil Shah, a partner at Counterpoint Research, the cost of investment in AI is high, and Apple may choose to pass that expense onto its customers.

"Apple's subscription model, Apple One, becomes more profitable due to the inclusion of software and services," Shah stated in a CNBC interview last week.

For $19.95 monthly, Apple One offers access to multiple Apple services, including Apple Music.

Apple could charge between $10 and $20 for Apple Intelligence, which could be included in Apple One for enhanced AI capabilities.

In the June quarter, Apple's services division generated $24.2 billion, setting it apart from other hardware companies that struggle to profit from software.

CCS Insight's chief researcher, Ben Wood, stated in an interview with CNBC this week that Apple is among the select companies in the connected devices industry that have successfully monetized the additional services they provide.

"Due to its users' expectation of paying for premium services, Apple may decide to charge for advanced features within its Apple Intelligence offering."

Apple Intelligence could provide the U.S. giant with the option to launch a bundled subscription service that includes various services at a single price, as Wood added.

He stated that Apple would also be hesitant to reduce income from individual product subscriptions.

Technology firms often charge for their AI offerings, such as OpenAI's subscription fee for advanced ChatGPT features and its AI Copilot tool.

Samsung, Apple's biggest rival, is still evaluating different revenue models for its AI software, its mobile head revealed to CNBC last month.

According to Shah, AI provides Apple with an opportunity to strengthen its relationship with its existing customers by personalizing their experience through Apple Intelligence, which learns from user behavior.

As you use AI more, it learns about you and becomes more personalized, but this also means that you become more reliant on the AI model and can't easily switch to a different platform.

"As you become more accustomed to using Apple's products, you begin to rely on them more, which ultimately leads to increased monetization for the company."