Only 16% of households use a paid version of an AI application
, /PRNewswire/ — New research from Parks Associates finds generative AI has crossed into mainstream use in US internet households, with adoption surging over the past year. However, despite rapid usage growth and expanding platform integration, monetization remains limited, and consumer trust continues to challenge providers. New research shows 58% of US internet households now use generative AI tools, up more than 10 percentage points from 47% in Q4 2024.
The firm’s AI Experience Q4 2024 Dashboard, based on a survey of 8,018 US heads of internet households, shows AI shifting from novelty to embedded utility across personal, professional, and smart home environments.
“AI has moved into the mainstream of digital life,” said Jennifer Kent, SVP & Principal Analyst, Parks Associates. “But the winners in the next phase won’t be those with the most features — they’ll be the companies that deliver trusted, embedded intelligence inside ecosystems consumers already value.”
Parks Associates finds that smart home and security customers represent the most attractive near-term segment for AI service monetization. Security system owners use paid AI tools at roughly twice the rate of the average household. With approximately 41 million US internet households owning a security system, this translates into more than 12 million homes already engaged with paid AI solutions.
Topline Findings
- Only 16% of households use a paid version of an AI application, representing roughly 20 million US internet households.
- 30% of consumers say they are less likely to purchase a product marketed as “AI-powered,” nearly double the share who say such messaging increases purchase intent.
- ChatGPT leads the market with 38% household usage, up from 26% one year ago; two-thirds of generative AI users report using ChatGPT.
- 15% of security system owners pay for AI-powered enhancements to their security services today, and security households account for roughly two-thirds of all paid AI users.
“AI-forward branding alone does not drive purchase intent,” Kent said. “Consumers reward clear utility and embedded value, not buzzwords. Providers must prioritize transparency, privacy by design, and practical service benefits to convert adoption into durable revenue.”
The AI Experience Dashboard, which the firm announced in December, is part of Parks Associates’ ongoing Consumer Insights research program, which tracks AI sentiment, platform usage, monetization trends, and competitive positioning in the connected consumer ecosystem.
Parks Associates will host its 30th annual CONNECTIONS™: The Premier Connected Home Conference May 5-7 in Santa Clara, with sessions on AI, security, broadband, energy, and the smart home featuring its latest research. For more or to schedule an interview with an analyst, contact Mindi Sue Sternblitz-Rubenstein, 972-490-1113.
About Parks Associates
Parks Associates is a global research, consulting, and marketing firm with 40 years of experience delivering proprietary consumer data and industry insights for businesses. The firm provides custom research, strategic consulting, and forward-looking analysis across connected home, small business, and commercial markets, including security, smart home, broadband, entertainment, energy, multifamily, smart buildings, connected health, and emerging AI-driven technologies.
Parks Associates supports industry growth through proprietary research, consulting, and executive networking and convenes thousands of leaders each year through its flagship conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at www.parksassociates.com.
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Mindi Sue Sternblitz-Rubenstein
Parks Associates
972.490.1113
[email protected]
SOURCE Parks Associates
