Ways to use AI to generate passive income are:
- Rank a local lead generation website using AI
- Use AI to write blog content
- Write and publish eBooks with AI to earn royalties
- Create and sell an online course using AI
- Develop custom AI chatbots for small businesses
Artificial intelligence is set to take the working world by storm over the coming years. In fact, billionaire investor Ray Dalio believes that AI could create a 3-day working week. Although we aren't quite there yet for the broader working population, there are ways that saavy individuals can start leveraging AI to generate tens of thousands of dollars in passive income today.
AI passive income isn't just possible, it's a reality for those who take the time to explore passive income opportunities and assess the potential for AI integration. AI technology like ChatGPT and Midjourney are revolutionizing the way people are making money. Generative AI can take simple human inputs and generate some seriously impressive outputs that even the most advanced minds in fields like content creation and computer science can no longer ignore. Here are some of the best ways to use AI to generate passive income in 2024, and which are the best tools for the task.
1. Rank a Local Lead Generation Website Using AI
Ranking a local lead generation website using AI is a powerful strategy to create passive income by connecting local businesses with potential customers. This method involves creating a website that attracts local customers and then referring them to service businesses in the area for a fee. A survey by BrightLocal reveals that 93% of consumers used the internet to find a local business in the last year.
AI can streamline this process in several ways:
By leveraging AI, you can efficiently create and optimize multiple local lead generation websites. This approach can lead to steady passive income, as local businesses often pay between $500 to $3,000 per month for quality leads. The automated nature of AI tools means you can manage multiple sites with less effort, potentially increasing your passive income streams.
2. Write Blog Content With AI
Using AI to write blog content allows you to leverage artificial intelligence tools to generate written content for blogs. AI tools like ChatGPT and Surfer SEO can create high-quality articles that target specific niches. This method is effective because blogs are popular; approximately 77% of internet users read blogs, according to Social Media Today. Blogging can be highly profitable, with the average blogger earning around $84K per year, as per Glassdoor.
AI streamlines the content creation process. Instead of spending hours writing, bloggers can generate articles quickly and consistently. As reported by Databox, most companies show that using generative AI for content creation results in time savings ranging from 25% to 74%. Once published, AI-generated blog content has the potential to earn passive income through affiliate marketing, Google AdSense, sponsored posts, and product sales. The key benefit is that AI allows you to scale your blog faster and reach a wider audience, without the time-intensive work of writing each post yourself.
Timothy Sykes is a famous penny stock trader who turned a small investment into millions. His blog is highly successful, making about $1 million every month. It covers penny stock news, trading tips, and includes calls-to-action that invite readers to join his stock trading courses. These course sign-ups are a big part of how his blog makes money. What sets Sykes apart is how well he promotes himself. He’s been featured on CNN, Forbes, and Fox Business, using every chance to grow his personal brand and reach more people.
3. eBooks With AI to Earn Royalties
Writing and publishing AI-generated eBooks for royalties involves using AI tools to create digital books and selling them on self-publishing platforms to earn ongoing passive income. Platforms like Amazon KDP and Google Play Books allow you to self-publish and earn up to 70% in royalties on eBooks priced between $2.99 and $9.99. Once published, you can continue to earn passive income as the royalties keep coming with no additional effort. According to ZonGuru, self-published authors on Amazon Kindle can make between $150 and $20,000 per month, depending on sales.
AI tools, like ChatGPT, make the process easier by helping you choose a niche, develop an outline, and write the content for your book. Additionally, AI tools like Quillbot can polish your text by improving grammar and readability. It ensures your eBook is ready for publishing.
Paul Rose has successfully used AI to create a profitable business on Amazon KDP. By leveraging AI tools like ChatGPT and Leonardo AI, she streamlines writing and publishing eBooks. Rose explains that Amazon allows both AI-generated books (where AI creates the content) and AI-assisted books (where AI refines the content).
Her method involves selecting the type of book, conducting keyword research to find profitable niches, and using AI to generate content and images. For example, she created a children's storybook on the "parables of Jesus" using Leonardo AI for images and ChatGPT for text. By combining these elements with Canva for design, Rose produced a polished eBook ready for publication. This approach saves time and optimizes the books for Amazon's marketplace. It makes it easier to earn royalties.
4. Online Course Using AI
Creating and selling an online course using AI involves leveraging artificial intelligence tools to develop, produce, and market educational content on digital platforms. It includes Coursera, Udemy, and Skillshare. Since its launch in 2000, the global online learning market has grown by over 900%, making it the fastest-growing sector in education, according to Oxford College. Selling online courses can earn anywhere between $1,000 and over $100K annually, according to Online Course Host, with some courses generating six-figure profits from just a few dozen sales. For instance, Tim Sanders, creator of the Private Label Masters course, sells his course for $5,000 and continues to earn substantial passive income years after its creation.
AI tools simplify the course creation process. ChatGPT can help plan and organize course modules, while AI animation tools like Vyond or Moovly enhance student engagement with high-quality visual content. While AI can assist with any subject, focusing on areas where you have expertise ensures accuracy and credibility.
Blue Carrot has successfully utilized AI tools like ChatGPT, Synthesia, and HeyGen to revolutionize e-learning content creation. In a recent project, they produced over 70 hours of learning content in four languages within two months. By leveraging generative AI for video creation, Blue Carrot significantly reduced the time and resources needed. It allows for rapid and efficient content production. This approach not only saved costs but also ensured high-quality, localized content that was ready for immediate use by learners across different linguistic and cultural contexts.
5. Custom AI Chatbots for Small Businesses
Developing custom AI chatbots help small businesses to enhance customer communication and support. According to CCW Digital, 84% of companies see AI chatbots as crucial for customer interaction. Additionally, Gartner predicts that by 2027, chatbots will become the primary customer support channel for at least 25% of companies. This trend offers a profitable opportunity to work with businesses by setting up custom chatbots on their websites or social media accounts. A smart way to earn passive income from this service is by charging an ongoing monthly subscription fee for the continued use of your chatbot.
To create an AI chatbot, you need to train its language model to generate the right responses. This involves teaching the bot how to answer common questions and what language to use. By focusing on a specific business niche, such as dental offices, you can become an expert in the typical customer interactions of that industry and train your chatbot accordingly. To build AI chatbots and earning money, you can use chatbot templates from platforms like ChatFuel and ManyChat.
H&M nailed it with their AI-based chatbot on Kik, offering personalized style advice to customers. This fashion retailer's chatbot engaged over 70,000 users quickly, proving its potential for user engagement. The chatbot asked users about their style preferences and suggested outfits accordingly. This not only improved H&M’s relationship with customers but also drove significant traffic to their website, leading to increased sales.
6. Mobile App Using AI
Creating AI-powered mobile apps means building smartphone software that uses artificial intelligence to offer smart features or personalized experiences. According to Business of Apps, over 100 billion apps were downloaded in 2021, and this number is expected to double by 2025, reaching around 200 billion. This massive market provides a significant opportunity for developers to create apps and earn revenue.
Mobile apps offer several ways to earn passive income, such as:
Mobile apps that rank in the top 200 of their app store can generate around $82,500 per day, according to MCRO Tech, while those ranked within the top 800 still average around $3,500 in daily revenue. With AI tools like Appypie, you no longer need coding skills to develop an app. These no-code platforms let you build AI-powered apps simply by describing your project in plain English.
In a video by WeAreNoCode, host Christian Peverelli shows how to build a mobile app from scratch in just 30 minutes using the no-code platform Buzzy, combined with AI tools. Buzzy enables users to create apps without writing any code by utilizing prompt-based inputs. The tutorial focuses on constructing a recipe review app. It features functionalities such as adding recipes, leaving reviews, and viewing recipe details.
Christian Peverelli shows the ease and speed of developing a functional mobile app using no-code and AI tools, making app creation accessible to non-developers. By following the step-by-step tutorial, you can swiftly build and personalize your own apps.
7. YouTube automation Channel Content
Using AI for YouTube automation channel content helps you create and manage a YouTube channel that generates passive income. YouTube automation involves setting up a niche channel and outsourcing tasks like content creation, optimization, and management to AI and freelancers.
These YouTube channels can earn passive income through various monetization methods, including:
YouTube channels can make around $18 per 1,000 video views just from AdSense, which means channels with hundreds of thousands or millions of views can generate significant income. Since YouTube videos remain online indefinitely, they can continue earning passive income for years. By outsourcing most of the work, this income is almost entirely passive.
What Are Ways to Use AI for YouTube Automation?
Some ways to use AI for YouTube Automation includes:
In a video from the Make Money Matt YouTube channel, Matt Par explains how combining AI tools with YouTube can turn a channel into a significant revenue stream, even for beginners. He shares his own success, including his "Make Money Matt" channel, which earns over $100,000 per month. Matt introduces essential AI tools like Tube Magic for generating video ideas, scripts, and optimizing content; MidJourney for creating stunning thumbnails; 11 Labs for realistic AI voiceovers; Storyblocks for high-quality stock footage; and CapCut for seamless video editing. By leveraging AI, Matt's student, who runs the channel "Debtbusters," grew his channel to nearly 20,000 subscribers and earned over $10,000 per month.
8. Use an AI advisor to create an investment portfolio
Using an AI advisor to create an investment portfolio helps manage and optimize your investments, generating passive income. AI tools like ChatGPT can analyze vast amounts of data and use predictive analytics to offer insights for automated trading and investment strategies. According to CNN, AI has showed the potential to outperform traditional fund managers in stock picking. In fact, over 40,000 investors have collectively invested more than $35 million in the GPT Portfolio, which was curated by ChatGPT. Remarkably, this portfolio outperformed 7 of the top 10 US investment funds just five weeks after its launch, as reported by Business Insider.
Investing is one of the most established ways to earn passive income. Stock investments provide returns in two ways:
AI advisors simplify the investment process by offering data-driven insights, reducing the time and effort required to manage a portfolio. These AI-powered tools can adjust portfolios in real-time based on market trends, optimizing returns without manual intervention.
BlackRock Inc. (BLK) is a leader in using artificial intelligence for managing investment portfolios. They use a AI technology called Aladdin, which helps investment professionals analyze data and manage risk. Aladdin creates a unified system that covers both public and private markets, as well as operations and data.
9. Invest in AI companies
Investing in AI companies involves purchasing stocks in companies that are leading advancements in artificial intelligence. As AI drives the next wave of technological innovation, many businesses are incorporating AI into their operations and developing supportive hardware. Investing in these companies offers potential income through stock dividends and capital gains as their value increases with AI adoption.
Some of the top companies poised to benefit from the rise of AI technology include:
10. Sell data to AI companies
Selling data to AI companies means monetizing data by providing it to AI companies that require large datasets to improve their algorithms. AI models need vast amounts of data to function efficiently, particularly for data science and machine learning purposes. If your business or online platform collects valuable consumer data, you can turn that information into a passive income stream by selling it to companies working on AI projects.
Some types of data that are highly valuable to AI companies include:
To generate passive income, you can automate the collection and aggregation of this data, then license it to AI companies on a subscription basis. This approach allows you to create a steady stream of income with no constant oversight.
11. Sell AI-generated art
Sell AI-generated art" refers to using artificial intelligence to create digital art that can be sold online for passive income. With internet users spending an average of 6 hours and 40 minutes per day online, according to Statista, the demand for digital art has surged. Digital art is used across the web in advertising, branding, and more. AI-generated art has become a valuable asset, replacing the need for graphic designers many times. For example, during the NFT boom of 2021, digital artwork like The Merge by Pak sold for an astonishing $91.8 million, highlighting the potential market value.
Today, AI-generated art is commonly used in online spaces, from advertising banners to profile pictures. You can legally sell AI-generated images since copyright law, according to a U.S. federal court ruling, only protects human-created content. Many platforms, such as Midjourney, allow commercial use of AI-generated art with a paid membership. The value of AI-generated art can vary widely, depending on the context. For example, the most expensive AI-generated art piece, Portrait of Edmond de Belamy, sold for $432,000 in 2018, while simpler graphic images for advertising might sell for $10 to $100.
To earn passive income from AI-generated art, consider the following methods:
What Are the Best AI Tools to Generate Passive Income?
Conclusion: What Is the Most Effective Method for Using AI to Generate Passive Income
Ranking local lead generation website is the most effective method for using AI to generate passive income. Local lead generation entails competing against a small and concise portion of the internet because you use local SEO to target specific locations, unlike other options like blogging, YouTube, or Amazon KDP, where you need to compete globally on those respective platforms to get traffic. A local lead generation website can also net you upwards of $3,000 in passive income per month, an amount that is highly unlikely for other potential monthly subscription opportunities, like custom chatbots or data sales, where you'd be lucky to get a few hundred dollars a month in ongoing subscription income.
Local lead generation is also relatively simple. Unlike prompting an AI system to create a mobile app or investment portfolio, which typically requires some level of professional competence, local lead generation is based on the relatively easy-to-learn skill of SEO, which can be learned in a few short weeks, according to SEO Buddy. Therefore, you can use AI to help you earn thousands of dollars in passive income each month with very little skill doing local lead generation. If you want to learn more about creating a passive income stream online with local lead generation, you can check out this local lead generation training, which has helped over 7,000 students achieve greater financial independence.
