By R. Larsson, Advertising Week
The tipping point is here. Over 60% of U.S. adults have used AI in the past six months—and nearly 1 in 5 are now using AI daily. Globally, that’s a staggering 1.7–1.8 billion users and roughly 500–600 million daily. What began as a trend has quickly morphed into an ingrained consumer habit.
$12B Market with a Monetization Gap That Demands Attention
Despite near-universal engagement, only around 3% of users are paying for premium AI services—generating a $12 billion annual market today. With typical subscription rates at $20/month, consumer AI has only scratched the surface compared to its $432 billion potential. That’s a historic conversion gap crying out for strategic activation .
Who’s Driving AI Adoption—and Why That Matters
Millennials (ages 29–44) have emerged as the dominant daily users of AI, overtaking Gen Z in regular engagement. Within this group, parents—particularly Millennial parents—are leading the charge: 79% have used AI compared to just 54% of non-parents, and their daily usage is nearly double (29% versus 15%). These are busy decision-makers navigating the demands of family, work, and personal life, increasingly turning to AI for support. Even Baby Boomers are joining the movement, with 45% having used AI recently and 11% using it daily. The marketing insight? Go beyond targeting the traditionally tech-savvy. Focus on high-friction life segments—like parenting, health, and professional productivity—where AI can meaningfully reduce stress, add value, and deepen consumer loyalty.
The Power of Default
An overwhelming 91% of users default to general-purpose AI tools like ChatGPT or Google Gemini for nearly every task, only turning to specialized apps when these defaults fail to meet their needs. This behavior presents both a challenge and an opportunity for brands. To overcome entrenched user habits, any AI product must deliver a truly exceptional advantage—offering a tenfold improvement in efficiency, output, or overall experience—to earn attention and loyalty in an increasingly crowded market.
Where AI’s Value Is Gaining Traction
Consumers are beginning to integrate AI into a wide range of everyday tasks, with 14–19% using it for writing emails, creating to-do lists, conducting research, planning meals, taking notes, managing expenses, and tracking health. Among those already engaged in these activities, AI adoption is even more significant: 51% use it for writing, 47% for coding, 43% for work or school support, 38% for designing presentations, and 37% for music or audio creation—signaling where AI is becoming most embedded in user behavior.
The most potent activation strategy is integrating AI into habitual creative, educational, and professional workflows, making solutions indispensable.
Untapped White Space: Where Brands Can Win
- Health & Wellness: Only 14% use AI for tracking nutrition or mental health—despite high demand. Consumers want trust, privacy, and empathy .
- Connection & Relationship: Early signs show AI for dating, companionship, and social coaching is rising. There’s an authentic opportunity to build emotionally intelligent tools.
Win hearts by addressing vulnerability—create emotionally resonant, trustworthy AI that integrates deeply into sensitive or personal aspects of life.
What’s On the Horizon in the Coming Year?
- Specialist AI goes mainstream – Sell depth over breadth.
- End-to-end workflows – Position AI as a life-conductor, not just a task tool.
- Multi-player & social experiences – Tap into network effects and shared value.
- Voice AI boom – With conversational interfaces becoming frictionless, voice will disrupt digital consumer engagement.
- Physical AI enters the home – Be ready for robotics to shift from automotive to everyday tasks.
- Revenue diversification – Beyond subscriptions: advertising, affiliate, and transactional models will reshape go-to-market economics.
Final Call to Marketers
Consumer AI is no longer a nice-to-have—it’s central to everyday life. But monetization lags: this is marketing’s moment to bridge utility with emotional connection. Position your AI product as the indispensable partner in complex daily rituals—parenting, health, learning, and more.
Invest in trust, authenticity, and seamless integration. Win by solving real friction—faster, smarter, more human.
About the Data
This summary is grounded in Menlo Ventures’ survey of 5,031 U.S. adults conducted in April 2025, with global estimates and market sizing extrapolated by Menlo.
