The Future of AI in Business: A Comprehensive Look Into B2C and B2B

Saturday - December 30 2023, 13:41 UTC - 10 months ago

The total TAM of B2C is estimated at $10-20B, and the total TAM of B2B is estimated at $200B+. Companies should consider the different TAMs and levels of efficiency and cost savings available in the B2B and B2C markets when making investments in AI.

B2B will be the larger future revenue.

For B2C: .

The total TAM is about $10-20B. Tech incumbents make more now. Google ($280B), Microsoft ($218B), and Meta ($117B). The breakeven for the $20/month GPT+ subscription fee is about 50 pages of text output per day at the current token cost. There are currently about 3 million customers paying $240 per year for about $700 million in revenue. Nextbigfuture notes the token and other costs could decrease with more efficient future AI. The B2C TAM could increase if AI is able to deliver more future customer value.

For B2B: .

The total TAM at $200B+ under current token pricing. This assumes an addressable population of 2 billion and an ARPU of at least $100.

In October, 2023, Sam Altman said the OpenAI runrate was $1.3 billion. This is likely $1.5 billion now. The B2B portion is the difference between the runrate less the B2C estimate. More competition from open-source models will likely reduce the TAM for closed-source models.

The future of AI in business looks incredibly promising, both for B2B and B2C segment. Companies looking to take advantage of the latest breakthroughs in artificial intelligence should consider the different TAMs and levels of efficiency and cost savings available in each market, and use that as guidance for their investments in the space.