Updated
Updated · arxiv.org · Oct 23
Monetizing Intelligence: Advertising and Subscription Design on LLM Platforms
Updated
Updated · arxiv.org · Oct 23

Monetizing Intelligence: Advertising and Subscription Design on LLM Platforms

1 articles · Updated · arxiv.org · Oct 23

Summary

  • A new study examines how large language model (LLM) platforms balance advertising, subscription pricing, and service quality.
  • Researchers found that advertising can fund broader access to AI services but may polarize user utility, with some benefiting and others facing higher prices or degraded quality.
  • The analysis suggests moderate advertising caps and improved compute efficiency can enhance consumer outcomes, making menu design central to LLM monetization strategies.