STOCK TITAN

Zuora Study Highlights Consumer Adoption Trends and Preferences for AI and GenAI Services

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Positive)
Tags
AI

Zuora's study on AI and GenAI services adoption reveals key consumer trends:

  • 28% of respondents currently use GenAI services, with adoption highest among Gen Z (50%) and lowest among Boomers/Seniors (9%)
  • 53% of respondents prefer usage-based pricing for AI and GenAI services
  • Early adopters show interest in outcome-based charges, particularly Gen Z
  • 70% of respondents are unwilling to pay extra for embedded GenAI features, but Gen Z is split on this issue

The study suggests that aligning monetization strategies with perceived value and generational preferences could be key for companies looking to capitalize on AI and GenAI services.

Lo studio di Zuora sull'adozione dei servizi di AI e GenAI rivela tendenze chiave dei consumatori:

  • Il 28% degli intervistati utilizza attualmente servizi di GenAI, con l'adozione più alta tra la Gen Z (50%) e la più bassa tra i Boomers/Seniores (9%)
  • Il 53% degli intervistati preferisce la tariffazione basata sull'uso per i servizi di AI e GenAI
  • I primi adottanti mostrano interesse per le tariffe basate sui risultati, in particolare la Gen Z
  • Il 70% degli intervistati non è disposto a pagare un extra per funzionalità di GenAI incorporate, ma la Gen Z è divisa su questo punto

Lo studio suggerisce che allineare le strategie di monetizzazione con il valore percepito e le preferenze generazionali potrebbe essere fondamentale per le aziende che desiderano capitalizzare sui servizi di AI e GenAI.

El estudio de Zuora sobre la adopción de servicios de IA y GenAI revela tendencias clave de los consumidores:

  • El 28% de los encuestados utiliza actualmente servicios de GenAI, siendo la adopción más alta entre la Generación Z (50%) y la más baja entre los Boomers/Seniores (9%)
  • El 53% de los encuestados prefiere precios basados en el uso para los servicios de IA y GenAI
  • Los primeros adoptantes muestran interés en tarifas basadas en resultados, especialmente la Generación Z
  • El 70% de los encuestados no está dispuesto a pagar más por características de GenAI integradas, pero la Generación Z está dividida en este tema

El estudio sugiere que alinear las estrategias de monetización con el valor percibido y las preferencias generacionales podría ser clave para las empresas que buscan capitalizar en servicios de IA y GenAI.

주오라의 AI 및 GenAI 서비스 채택에 대한 연구는 소비자 트렌드를 드러냅니다:

  • 응답자의 28%가 현재 GenAI 서비스를 사용하고 있으며, Z세대에서 채택률이 가장 높고 (50%) 베이비붐 세대/노인에서 가장 낮습니다 (9%)
  • 응답자의 53%가 AI 및 GenAI 서비스에 대해 사용 기반 가격 책정을 선호합니다
  • 조기 채택자들은 결과 기반 요금에 대한 관심을 보이며, 특히 Z세대
  • 응답자의 70%는 포함된 GenAI 기능에 대해 추가 비용을 지불할 의사가 없다고 하지만, Z세대는 이에 대해 의견이 분분합니다

이 연구는 수익 창출 전략을 인식된 가치와 세대별 선호에 맞추는 것이 AI 및 GenAI 서비스에서 이익을 얻고자 하는 기업에 중요할 수 있다는 점을 시사합니다.

La étude de Zuora sur l'adoption des services d'IA et de GenAI révèle des tendances clés chez les consommateurs :

  • 28% des répondants utilisent actuellement des services de GenAI, avec un taux d'adoption le plus élevé parmi la génération Z (50%) et le plus bas parmi les Boomers/Seniors (9%)
  • 53% des répondants préfèrent une tarification basée sur l'utilisation pour les services d'IA et de GenAI
  • Les premiers adopteurs montrent un intérêt pour des frais basés sur les résultats, en particulier la génération Z
  • 70% des répondants ne sont pas disposés à payer plus pour des fonctionnalités GenAI intégrées, mais la génération Z est divisée sur cette question

L'étude suggère que l'alignement des stratégies de monétisation avec la valeur perçue et les préférences générationnelles pourrait être essentiel pour les entreprises souhaitant tirer profit des services d'IA et de GenAI.

Die Studie von Zuora zur Adoption von AI- und GenAI-Diensten zeigt wichtige Verbrauchertrends:

  • 28% der Befragten nutzen derzeit GenAI-Dienste, wobei die Akzeptanz bei der Gen Z am höchsten ist (50%) und bei Boomern/Senioren am niedrigsten (9%)
  • 53% der Befragten bevorzugen nutzungsbasierte Preismodelle für AI- und GenAI-Dienste
  • Frühzeitige Anwender zeigen Interesse an ergebnisbasierenden Gebühren, insbesondere die Gen Z
  • 70% der Befragten sind nicht bereit, extra für integrierte GenAI-Funktionen zu zahlen, aber die Gen Z ist in dieser Frage gespalten

Die Studie legt nahe, dass die Anpassung von Monetarisierungsstrategien an den wahrgenommenen Wert und die generationsübergreifenden Präferenzen entscheidend sein könnte, um von AI- und GenAI-Diensten zu profitieren.

Positive
  • 28% of respondents are currently using GenAI services, with another 27% interested in trying them
  • 53% of respondents prefer usage-based pricing models for AI and GenAI services
  • Gen Z shows highest adoption rate (50%) and preference (23%) for outcome-based charges
  • 54% of Gen Z respondents are willing to pay extra for embedded GenAI features
Negative
  • 70% of respondents are unwilling to pay extra for embedded GenAI features
  • Low adoption rates among older generations (9% for Boomers/Seniors, 20% for Gen X)

Early adoption rates for GenAI services point to clear opportunities and monetization strategies

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today released the findings of its latest study, AI Monetization Strategies: What Consumers Want and How to Deliver, which analyzes consumer behaviors and preferences regarding AI and generative AI (GenAI) services.

As businesses navigate monetization strategies for these new technologies, The Subscribed Institute at Zuora® commissioned The Harris Poll to conduct a study in May 2024 among more than 2,000 U.S. adults to better understand current adoption and sentiment regarding AI and GenAI services. While the pace of innovation is not slowing down, the data shows that we are still in the early stages of consumer adoption, particularly for older generations.

Key findings from the study include:

  • While we are at the beginning of the consumer adoption curve for AI services and technologies, there are clear opportunities to drive future adoption across age groups: 50% of Gen Z respondents are currently using the technology, compared to 43% of Millennials, 20% of Gen X and only 9% of Boomers/Seniors. Overall, 28% of respondents say they are using these services. Another 27% of all respondents are not currently using GenAI services, but report an interest in trying them.
  • Preference for usage-based models: More than half (53%) of all respondents say it is important to have a usage-based pricing model available for AI and GenAI services, compared to much fewer who say the same for an option for an annual recurring (29%) or monthly recurring (28%) charge for AI and GenAI services.
  • Early adoption of AI services may be linked to a preference for outcome-based charges: Study results indicate a potential correlation between GenAI services adoption and interest in outcome-based charge models. Among those who use or are interested in using GenAI services, Gen Z reported both the highest adoption rate of GenAI services (50% of Gen Z) and the highest preference (23%) for outcome-based charges (compared to 17% of Millennials, 16% of Gen X, and only 8% of Boomers/Seniors). This type of usage-based pricing model charges customers based on the actual resolutions, or outcomes, produced by the service.
  • Success hinges on aligning monetization with perceived value: Most respondents (70%) said they would not currently be willing to pay extra for embedded, GenAI-enabled features, however, early adopters may be more willing. Gen Z is the only age group that is essentially split down the middle in terms of willingness to pay (54% yes; 46% no) for added GenAI capabilities within an existing subscription (compared to Millennials: 43%, Gen X: 24%, Boomers/Seniors: 11%). By tapping into the preferences of those adopting the technology at higher rates, like Gen Z, vendors may be able to expedite value realization.

“The rapid evolution of AI services presents significant monetization opportunities and challenges,” said Amy Konary, Senior Vice President and Founder of the Subscribed Institute at Zuora. “The varying interest between generations highlights the need to deliver clear value while acknowledging that value may differ for each age group. Companies that embrace usage-based pricing and outcome-oriented models can also be better positioned to maintain recurring customer relationships in the age of AI.”

To read the full study, visit here.

About Zuora, Inc.

Zuora provides a leading monetization suite to build, run and grow a modern business through a dynamic mix of usage-based models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue accounting, Zuora’s flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric and Zoom use Zuora’s leading combination of technology and expertise to turn recurring relationships and recurring revenue into recurring growth. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit zuora.com.

Forward-Looking Statements

This press release may be deemed to contain forward-looking statements. Words such as "plan," “expect” and "will" and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve risks and uncertainties. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release.

Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.

© 2024 Zuora, Inc. All Rights Reserved. Third party trademarks mentioned above are owned by their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Zuora, Inc. or any aspect of this press release.

SOURCE: ZUORA, INC.

Media Contact:

Margaret Juhnke

press@zuora.com

619-609-3919

Investor Relations Contact:

Luana Wolk

investorrelations@zuora.com

650-419-1377

Source: Zuora, Inc.

FAQ

What percentage of respondents are currently using GenAI services according to Zuora's study?

According to Zuora's study, 28% of respondents are currently using GenAI services.

Which pricing model do consumers prefer for AI and GenAI services based on Zuora's research?

Zuora's research shows that 53% of respondents prefer usage-based pricing models for AI and GenAI services.

How does GenAI service adoption vary across generations according to Zuora's study?

Zuora's study reveals that GenAI service adoption is highest among Gen Z at 50%, followed by Millennials at 43%, Gen X at 20%, and Boomers/Seniors at 9%.

What percentage of respondents are willing to pay extra for embedded GenAI features in Zuora's study?

Zuora's study found that 30% of respondents are willing to pay extra for embedded GenAI features, while 70% are not.

Zuora, Inc.

NYSE:ZUO

ZUO Rankings

ZUO Latest News

ZUO Stock Data

1.53B
142.50M
1.69%
77.74%
2.25%
Software - Infrastructure
Services-prepackaged Software
Link
United States of America
REDWOOD CITY