35 Profitable AI Business Ideas | What is the Profit Potential of Artificial Intelligence?

The most profitable AI business ideas in 2024 include:

1. AI local lead generation agency
2. AI marketing agency
3. AI web design agency
4. AI blog
5. AI YouTube channel
6. AI video clipping business
7. AI eBook business
8. AI e-commerce business

AI companies are profitable as they're used in various industries today. Forbes says 83% of businesses claim AI is crucial in their strategies. Notable examples include OpenAI's ChatGPT in 2022, reaching 1 million users in 5 days. By 2023, this number grew to over 100 million monthly users.

AI is good for making money as it helps businesses focus on other aspects that let them compete. MIT Sloan Management's survey says 9 out of 10 global organizations believe AI gives them a competitive edge over competitors. This shows a high demand for AI tools.

First, you must learn the fundamentals of AI. Then, you can specialize in specific areas like NLP, Lidar, and more. To start making money from AI, you must learn your target market's pain points. Your creation must be innovative, solve problems, and improve work for the users.

I've been making money online since 2014 in various niches like FBA and lead generation. Today, I'm going to discuss profitable AI business ideas in 2024. I'll also talk about the profit potential, how you can start your own AI company, AI courses, and other ways of making money online.

1. AI Local Lead Generation Agency

The best AI business to start is a local lead generation agency. With AI, you automate many aspects of finding and qualifying leads for your clients. Local lead generation sites are scalable, cost less to set up, and deliver consistent income. Once set up, each of these sites can generate anywhere from $500 to $2,000 monthly. Additionally, you have full ownership of these sites, and you can opt to sell leads or rent out your sites.

In local lead generation, there's less competition as you only target specific locations. There's high demand for this service as local businesses can get quality leads faster. Compared to full SEO, businesses will see results between 6-12 months.

I've been doing local lead generation since 2014, and now I have about 50+ local lead generation sites. In total, these sites make about $52,000 monthly. To make copy for these sites, I use several tools like my keyword research and content writing tool. These are on my site and are free to use. However, you need to pay to access the advanced features of my content writing tool.

I trained my content writing tool based on my 10+ years of SEO content marketing experience. These tools are easy to use, and I'll show how you can create content with them:

Let's say you want to enter the dog-walking niche and already have a target location. For this scenario, let's say Lynn, MA, is the target location, as its population is between 75K and 250K.

First, let's use my keyword research tool to find possible topics for your site.

In the keyword research tool, type in your niche and location, "Dog walker in Lynn, MA," and hit Generate Keywords. This creates a list of related and long-tail keywords that we can use for my content writing tool.

For the results it generated, let's pick "Local dog walkers Lynn, MA." We can then proceed with generating content for the site.

Using my AI content writing tool, type in the keywords we got from the research tool.

Next, choose your preferred AI writer. Take note that in the free version, we can't choose other GPTs aside from GPT-4o Mini.

Then, set the SEO Optimization setting to your preferred setting. For this scenario, I'll use Default.

Next, choose your preferred Article Length. This lets you customize the number of sections your content will have manually. For our scenario, I'll choose Medium, which will make a blog with 5-7 sections containing 1,350 to 1,870 words.

Then, select your preferred Point of View. Since we're trying to make a lead-generating post, let's use the Second-Person POV.

Next, tick the Use Real-Time Data, Cite Sources options, and Use Outline Editor options. This lets the AI scrape the SERPs for relevant data to use in the content. And the Outline Editor lets you tinker with what the AI tool will draft.

Once that's done, click Create Article.

The AI will then begin creating an outline of your content.

And voila, it then gives you an optimized copy for your local lead gen site.

2. AI Marketing Agency

You can create an AI marketing agency that helps businesses reach their customers. Leveraging AI lets you focus on other tasks like managing client relationships. Here are the different types of marketing agencies you can set up:

AI marketing agencies can deliver exceptional results for clients by using AI. However, note that this business model still requires active involvement. You'll need to:

While AI can automate many tasks, your expertise and human touch are irreplaceable. You must manage client relationships, craft marketing strategies, and ensure you meet each client's unique needs.

3. AI Web Design Agency

You can create an AI web design agency that makes websites faster using fewer resources. Doing so allows you to deliver quality content and results to clients faster. This lets you focus on managing and scaling your business.

This service is in high demand as businesses want to connect with customers online. Snapps says 70% of US consumers buy online. Additionally, 58% of SMBs plan to build their websites. These numbers show the potential profitability of web design agencies.

4. AI Blog

Using AI, you can start a blog and build an audience that you can then monetize through various means. By leveraging AI, you can streamline the writing process and create quality articles. These attract traffic to your blog and, in turn, attract advertisers.

Authority Hacker says 65.8% of people find AI content equal to or better than human writing. Tools like ChatGPT and Jasper.ai can help you write, brainstorm, and outline your content. Then, you can use Grammarly or Hemingway to edit your writing tone and proofread your content. However, you must review and refine these outputs to ensure they align with your brand voice. This lets you focus on ensuring that your content provides value to your audience and blog.

Remember to engage with your audience through comments and social media. Encouraging discussions can boost your blog's visibility and attract potential sponsors or advertisers. Here are some ways you can monetize your AI blog:

5. AI YouTube Channel

With the right AI tools, you can create YouTube channels with streamlined production. You can build a team to "automate" the video creation process and focus on management. A great example of this is YouTube cash cow channels. Some AI tools to consider for your YouTube channel:

Then, you must create content consistently and grow your channel. This step is important to be eligible to monetize your AI YouTube channel. To monetize your AI YouTube channel, you can:

You must find ways to offset your content production and ad expenses to be profitable. For example, identify what content your audience likes or social media platforms that can add traffic to your channel. This lets you profit from YouTube channels with less manual effort.

6. AI Video Clipping Business

Using AI, you can create a video clipping business that creates clips from long video content. You'll clip videos for your client's social media posts, highlight reels, and more. This makes it easier for your clients to generate short-form marketing content.

Short-form content is one of the most effective ways to reach audiences. Tools like Pictory and Wisecut can extract highlights from long-form videos and create clips. Social Sprout says audience engagement rates for short-form videos outperform long-form by 250%. HubSpot says 44% of marketers will now use short-form videos to reach audiences in 2024. This shows the high potential and demand for AI video-clipping businesses.

7. AI eBook Business

You can leverage AI to start an eBook business and sell books on platforms like Amazon KDP. You must use these tools together with human creativity to create products that resonate with readers. This lets you speed up the publishing process and provide value to readers.

To get started, choose a niche or topic for your eBooks. Popular genres include self-help, fiction, and educational content. Then, you can use AI tools like ChatGPT-4o and Jasper.ai to help you generate drafts and outlines for your eBook. Tools like ProWritingAid and Grammarly help with proofreading and checking tone. Then, you can use MidJourney or DALL-E for your images and book covers.

As of September 2023, Amazon KDP requires publishers to flag their work for any AI-generated content. This includes texts, translations, and images from AI tools that you then edit. However, AI-assisted content means you created the content and used AI to improve it. These are not required for disclosure. Following these rules lets you avoid getting your products removed from the platform.

8. AI e-Commerce Business

Using AI in e-commerce makes it easier to run an online business. AIs can help you identify winning products and analyze consumer and competitor trends. This lets you focus on crafting and executing strategies that maximize profitability. Here are a few AI tools that you can use for your e-commerce business:

These AI tools help e-commerce businesses save time, reduce costs, and improve their marketing. This leads to more efficient operations and better customer experiences.

9. AI app development

With AI tools, you can help your clients develop apps for various devices and platforms. Leveraging AI streamlines development and problem-solving processes and improves user experiences. This reduces resources needed for app development for clients and lets them create better apps for customers faster.

When starting your AI startup, focus on identifying a specific problem your app can solve. Conduct market research to ensure there's demand for your solution. Utilize existing AI frameworks and APIs to create AI apps efficiently. This helps reduce development time and costs while still delivering powerful functionality. To monetize your AI apps, consider the following strategies:

10. AI chatbot service

You can offer AI chatbot services that can handle your clients' customer inquiries 24/7 for less cost. By leveraging these AIs, your clients can provide instant responses to customers. This lets them solve simple customer inquiries with AI and complex issues with human agents.

AI chatbots reduce wait times and provide consistent support for your client's customers. Salesforce says 88% of consumers are more likely to buy from companies with good customer service. This focus on customer service and experiences builds customer relationships and improves profitability. To create a successful AI chatbot service, focus on:

11. AI automation agency

With AI, you can create an automation agency that streamlines workflows for clients. By leveraging AI tools, you can automate routine tasks and improve workflows. This reduces operational costs for clients and lets them focus on other aspects. Here are some services you can offer to clients:

Many businesses recognize the benefits of AI automation. Influencer Marketing Hub says 69.1% of marketers use AI and praise its time and cost savings. By partnering with your AI automation agency, your clients can:

12. AI digital product business

With AI, you can create a digital product business that creates content for audiences. By leveraging AI tools, you can speed up content creation in various formats like graphics, videos, and text. You can then use human expertise to edit and refine this AI content before selling it to customers. You can also offer your services to clients and speed up their marketing processes.

Authority Hacker says 85.1% of people use AI to write articles and create content. To get started, identify your target market and their needs. Research popular AI tools and platforms that align with your product ideas. Experiment with different AI models to find the best fit for your digital products.

13. AI virtual assistant services

With AI, you can create virtual assistants that can handle various tasks and free up time for clients. By training AI, they can perform tasks like scheduling appointments and email management. You can offer these to clients to improve their workflows and costs and focus on important tasks. To implement an AI virtual assistant service, you'll need to:

As you refine your AI assistant, it can take on more complex tasks. This might include data analysis, generating reports, or even assisting with decision-making processes. Authority Hacker says 36% of executives use AI to improve internal processes. This shows a solid demand for AI virtual assistant services.

14. AI financial advising service for SMB

With AI, you can create a financial advising service to make analysis simpler for SMBs. By leveraging AI, your clients can make financial decisions without a full-time financial advisor. This lets SMBs focus on management, plan for growth, and improve profitability.

This service has potential, as SMBs see AI as helpful but believe they don't know how to use it well. According to Smart Data Collective's survey, 1,467 SMB CEOs say AI is the most impactful tech they've used. However, 37% believe that lack of expertise and implementation is their biggest challenge. This gap presents a great opportunity for AI-powered financial services. Your service lets SMBs harness AI while overcoming their lack of expertise.

15. AI bookkeeping service

With AI, you can offer bookkeeping services to clients and help manage their finances. By leveraging AI, you can provide quick, round-the-clock bookkeeping solutions. This helps your clients remain compliant and better manage their finances.

To start your AI bookkeeping service, you can use existing platforms or your own proprietary software. You can offer tiered pricing plans to cater to businesses of various sizes and needs.

Since you'll be handling sensitive data, you must provide top-tier security for your clients. For example, the Equifax data breach leaked 150 million client data and cost $700 million in settlements. Methods like installing encryptions and data protection policies and regulations are a must. This ensures your platform's security and increases your trustworthiness to clients.

16. AI tax prep service

With AI, you can create a tax preparation service that helps businesses and individuals manage their payments better. By leveraging AI, you can offer personalized services tailored for each client. This helps them find potential tax savings and make better tax decisions.

There is huge potential and demand for this service as people need to file their taxes right and do so electronically. Pew Research says 94% of Americans e-file their taxes. You can leverage this opportunity by providing a tool that's able to benefit users like:

17. AI trading business

With AI, you can start a trading business that can learn and analyze data faster than humans can. You can create trading bots that operate 24/7. These bots can find opportunities and risks that humans might miss and execute trades based on analyzing market data. To start an AI trading business, you'll need:

You can design your AI trading system to focus on specific markets, such as stocks and crypto. You should backtest your algorithms and start with small trades to see if they're performing as desired. While AI trading can be profitable, it does not guarantee trading success. You should take into account factors like market volatility can impact your strategy.

18. AI friend business

You can create an AI friend business that offers personalized companionship to users. Your bots can offer conversation and learn user's interests and preferences. To start this business, you'll need to:

This service has potential and demand as people already pay for companionship. Today, factors like technology contribute to the increasing isolation that people experience. For example, the American Time Use Survey's data says the isolation that a person experiences has increased by 40% from 2003 to 2022. In countries like Japan, services like rent-a-friend are popular ways for busy people to connect with others.

Marketing your service could focus on combating loneliness. When designing your AI friend system, consider privacy and ethical concerns. Ensure data protection and clear guidelines on the nature of the AI relationship. This provides users with a judgment-free space for self-expression or intellectual stimulation.

19. AI resume writing agency

You can create an AI resume-writing agency that optimizes your clients' resumes. By leveraging AI, you can improve their resumes to be detectable by Applicant Tracking Systems. This helps your clients increase their chances of getting hired. Your agency can offer various services like:

There is opportunity and demand for this service as more companies use ATS. JobScan says 90% of large companies now use ATS, and 75% of resumes get rejected by this software. This means that 1 in 4 resumes get seen by a hiring manager. Your service can help job seekers get better chances in their careers.

20. AI transcription service

You can create an AI transcription service that provides clients with accurate transcripts fast. By leveraging AI tools, you can provide a service that supports your clients' research. To start an AI transcription business, you'll need to:

There is potential and demand for this service as various industries need transcripts for their research. Platforms like Rev and Otter.ai boast a high 95% accuracy rate. However, these tools can sometimes mishear audio and make mistakes in the transcript. You must still use human expertise and check your tool’s outputs. Additionally, you can implement a final editing phase to improve the transcripts before handing them over to clients. This adds value to your service, ensures accuracy, and helps attract further business.

21. AI coaching business

You can create an AI coaching business that offers personalized guidance for each user. By leveraging AI, you can provide actionable insights relevant to the users' interests. This helps your clients stay on track and achieve their personal goals.

To monetize, consider offering tiered subscription plans or pay-per-session models. You can also integrate with existing platforms or develop a standalone app.

There is demand for this service as people want convenient coaching catered for them. Forbes says personalized coaching improves client engagement by 60%. For example, you made a fitness coaching app. Make sure it's capable of providing immediate user feedback based on their data. This ensures your clients get actionable insights into their health and can make plans to improve it.

Remember to focus on data privacy and security when handling sensitive client information. Regularly update your AI model to ensure it provides current and accurate advice.

You can create an AI health assistant business that supports medical professionals. By leveraging AI, you can streamline tasks like appointment setting and record management. This frees up time for your users and lets them focus on patient care efforts. Potential features of your AI health assistant:

There is opportunity and demand for this service as AI use in healthcare is increasing. Authority Hacker says 68% of healthcare organizations now use some form of AI. Between 2018 and 2023, AI providers for the healthcare sector have grown by 41.2%.

You must make your too easy to use and HIPAA compliant. For example, in the US, Statista’s 2022 data says the average age of physicians is 51.9. Research Gate's 2018 computer literacy data for people aged 50-59 is 11.7, which is near to children aged 5-9. This shows the importance of making intuitive tools that are easy to use. Additionally, your tool will be handling sensitive patient data. You must take steps to meet data privacy requirements and follow the law.

23. AI-powered recruiting tools

You can create an AI-powered recruitment tool that streamlines users' candidate screening process. By leveraging AI, your clients can find the most qualified candidates they need based on set criteria. This improves hiring processes, ensuring they find the right one in less time and effort. Some key benefits of AI recruiting tools include:

There is potential and demand for this service as AI has positive impacts on candidate matching for companies. McKinsey & Co. says AI helped companies improve candidate matching by 40%. Gartner says 66% of hiring managers helped them find stronger-fitting candidates. This leads to lower turnover rates and increased productivity for their users' workforce. Additionally, it helps them save resources required in their hiring process.

24. AI employee performance tracking

You can create an AI employee performance-tracking tool that analyzes productivity for your client's workforce. By leveraging AI, your clients can set metrics and get data-driven insights on their teams. This lets them see areas for improvement and skill gaps and improves productivity. These systems can monitor KPIs like:

There is demand for this service as companies that motivate their employees are more productive. Gallup says teams that are proactive in performance management improve productivity by 21%. However, not all companies' HR can focus on this as they get stifled by other tasks. McKinsey & Co says HR spends 40%- 60% of their time on admin and compliance tasks. This shows that AI can supplement HR's evaluation of employee performance and management. Oracle's survey says 67% of employees believe AI performance management gives fairer evaluations. This leads to higher employee satisfaction, productivity, and more transparent reporting and evaluations.

25. AI corporate onboarding

You can create a corporate onboarding AI that helps clients integrate new hires. By leveraging AI, your clients can streamline the onboarding process and reduce HR workload. This leads to consistent, comprehensive, and personalized onboarding experiences for new hires. Your AI onboarding tool can:

There is demand for this service, as data shows that improving onboarding for new hires has positive benefits for companies. Glassdoor says strong onboarding experiences improve employee retention by 82% and productivity by 70%. This shows how AI can help businesses reduce turnover and improve clients' teams.

26. AI customer insights business

You can create an AI consumer insight business that analyzes clients' customer data. Your clients can gain customer insights that identify trends and preferences. This lets them make better decisions and devise strategies that improve profitability. Your AI customer insights business can provide the following services:

There is demand for this service as businesses need to improve their data analytics and strategies. McKinsey says companies that use AI to understand customer preferences improved their decision-making accuracy by 60%. Forbes says companies that use customer analytics gain 126% higher profit margins than those that don't. This shows businesses that leverage your offerings can gain significant competitive advantages.

27. AI event planning platform

You can create an AI event planning platform that helps organizers manage events easier. Your AI tool can help users by streamlining the entire event from start to finish. This lets event planners focus on creating memorable experiences for attendees. AI event planning platforms can assist with tasks like:

Demand for this service is high as it's crucial in event planning and logistics. EventMB says AI platforms reduce planning time by up to 30%. Bizzabo says 77% of event professionals claim using technology increases engagement. This shows AI's positive impacts in this space and lets event planners focus on more important aspects.

28. AI cybersecurity consulting

You can create an AI cybersecurity consulting business that helps clients secure themselves. By leveraging AI, your clients can detect, prevent, and respond to threats in real time. This lets your clients protect themselves and their customers' data, increasing trust. By using your platform, your clients get:

Demand for this service is increasing as businesses need to protect their data online. Verizon says 43% of cyberattacks target small businesses that don't have the resources to protect themselves. IBM says AI systems can detect breaches 60 times faster than traditional methods. This shows AI's capabilities to help businesses secure themselves and stay ahead of threats.

29. AI fraud detection service

You can create an AI fraud detection service that helps protect your clients and their customer's data. Your AI can track transaction patterns and behaviors indicating potential fraud. This lets clients detect potential fraud and prevent potential financial and data threats. Key benefits of AI fraud detection include:

Demand for this service is high as cases of online fraud increase yearly. In 2023, the FTC's Consumer Sentinel Network received 5.39M reports consisting of fraud (48%) and identity theft (19%). A staggering 40.2% of the stolen identities were used to commit credit card fraud. McAfee says AIs can improve fraud detection accuracy by 80%. This shows a huge necessity for AIs to improve how businesses can stay ahead of bad actors and protect their assets and customer data.

30. AI smart home automation service

You can create an AI home automation service that installs smart devices in people's homes. By leveraging your service, your clients can improve and secure their living space. This leads to improved comfort, increased energy efficiency, and enhanced security. You can offer smart appliances that focus on areas like:

Demand for this service increases as more people use smart devices in their homes. Oberlo predicts the smart home market will grow by 10.2% yearly from 2019 to 2028. This results in consistent market growth. Tech Report says smart devices let homeowners save on utilities like cooling (15%), heating (12%), and energy (50%). 81% of Americans want to buy smart homes, and 54% of homeowners believe smart homes are easier to sell. This shows solid demand backed by data on how this service can be profitable.

31. AI property management

You can create an AI property management system that helps your clients handle their properties. Your AI helps clients automate tasks like rent collection, communication, and maintenance. This improves operational efficiency and reduces workloads for your clients.

There is demand for this service as it benefits both property managers and tenants. Deloitte says leveraging AI in property management reduces operational costs by 30%. The National Multifamily Housing Council says 80% of tenants want an easier way to communicate with their landlords. This shows a demand for services that add value to both tenants and landlords.

32. AI predictive analytics for sales

You can create an AI with predictive analytic capabilities that analyze client sales. By leveraging your AI, clients can gain insights into customer and market trends. This lets them identify profitable opportunities and improve sales strategies. Key benefits of AI predictive analytics for sales:

Demand for this service is high as AI's predictive capabilities improve sales processes. Forbes says companies that use predictive analytics improve sales forecast accuracy by 82%. Harvard Business Review says companies that use AI in their sales processes convert 50% more leads than those that don't. Your service can reduce reliance on manual data analysis. This lets clients focus on creating and executing data-driven strategies to drive growth and sales.

33. AI language training

You can create an AI language training tool that helps users learn foreign languages. Your clients get real-time feedback and personalized learning paths based on learner's needs. This helps students learn their target language efficiently and at their own pace. Consider offering features like:

Demand for this service is high as AIs are effective at providing 1-on-1 language coaching. Harvard Business Review says learners who use AI to practice pronunciation improve their accent accuracy by up to 40% than those who don't. McKinsey & Co. says personalized language coaching increases learning speed by 30%. These tools make language learning accessible and engaging to students. This shows a solid opportunity for services that can fill this demand gap.

34. AI virtual reality experiences

You can create an AI that gives users immersive virtual reality experiences. By leveraging your AI, users can immersion and experience beyond traditional media. VR experiences are also used in various industries like engineering and military training.

Demand for this service is high as VR continues to improve and use cases for the technology grow. VR is capable of providing lifelike simulations that are great for training professionals. G2 says VR training is 76% more effective for learning than traditional methods. PwC says trainees are 275% more confident in applying their skills after receiving VR training. This shows AI VR's viability and potential as a profitable AI business.

35. AI interior design service

You can create an AI interior design service that lets users visualize their custom living space. Using your AI tool, clients can get a realistic visual of their vision and design. This leads to better design decisions and removes the costly trial-and-error phase of interior design. Your AI interior design service provides users with the following:

Demand for this service is high as AI helps both designers and homeowners. Houzz says 66% of homeowners prefer to use technology to visualize their designs before committing. AI streamlines the interior design process and helps make creating unique living spaces easier.

What is the Profit Potential of an Artificial Intelligence Business?

The profit potential for AI businesses is high as AI use cases increase in daily life and work. Starter Story's data says AI businesses can earn up to 95% gross profit margins and up to $720K yearly. However, this can vary depending on factors like application and target market.

Initial costs to start an AI business can range from $10K and exceed $200K. Below are some of the factors that can affect price:

In-house Development

Outsourcing

How can I Start My own AI company?

Remember to focus on ethical AI development and address potential biases in your algorithms. Transparency and responsible AI practices will build trust with your customers.

Can You Start an AI Business Without Technical Skills?

Yes, someone can start an AI business without technical skills. But you must plan, collaborate with skilled professionals, and leverage the right tools. Here’s how you can do it:

While technical skills are beneficial, they aren't mandatory for starting an AI business. You can find the right experts, use the right AI platforms, and outsource to handle the technical aspects. This lets you focus on finding market opportunities and managing your business.

Which Courses Teach AI Business Models?

Conclusion: Should You use AI for Your business?

Yes, you should use AI for your business, as it improves many aspects of it. You can leverage AI to automate tasks, enhance customer experiences, and analyze data at speeds that far exceed humans. Authority Hacker says 75% of C-suite managers believe AI will help their team grow. IBM says 35% of businesses worldwide use some form of AI tool. To be competitive in today's market, you must leverage AI together with your expertise.

The best AI business ideas combine technology with real-world applications to help users. Despite AI's capabilities, 28% of people believe the human aspect is still irreplaceable. One promising alternative business model is local lead generation. This approach is beginner-friendly and has low startup costs, between $500-$1,000.

When done right, local lead generation allows you to build a passive income stream over time. When your site ranks and generates leads, they can make up to $500-$2,000 monthly. As you develop your AI systems, you can automate much of the process. This gives you the flexibility to scale your operations without increasing your workload.

For example, I have 50+ of these sites in various niches like limo services and tree care. In total, these earn over $52,000 monthly, in almost passive income. My mentor, Dan Klein, and I have been perfecting our local lead generation methods since 2014. If you're looking for a different business model to leverage AI in, check out local lead gen today.