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How Do Chatbots Earn Money?

How do these AI powered services bring in cash?
Last Updated on March 9, 2023
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They’re the latest innovation in AI technology, but how do chatbots earn money?

As chatbots like Chat GPT gain more popularity, numerous businesses are incorporating them to improve customer interaction and decrease expenses. This has led many among us to wonder exactly how they make money for companies like Open AI which have created them. AI-powered conversational language models, to give chatbots their full terminology, have a variety of functions that let them generate serious cash for their creators and those who use the service.

This write-up will investigate the various means by which chatbots make money.

Lead Generation

One way chatbots make money is by generating leads for businesses. By engaging with customers and collecting information about their needs and preferences, chatbots can help businesses identify potential customers and target them with relevant offers and promotions. This can help businesses increase their sales and revenue.

Upselling & Cross-Selling

Another way chatbots make money is by upselling and cross-selling to customers. By analyzing customer data and behavior, chatbots can identify opportunities to recommend additional products or services that complement the customer’s purchase. Again, this can help businesses increase their revenue per customer.

Subscription Models

Chatbots can also generate revenue through subscription models. For example, a business may offer a chatbot-based service that provides personalized recommendations or advice to customers for a monthly or yearly subscription fee. This can provide a predictable stream of revenue for the business.

Commission-Based Models

Some chatbots earn money through commission-based models. For example, a chatbot may recommend products or services to customers and receive a commission on any sales that result from the recommendation. This can incentivize the chatbot to provide high-quality recommendations that result in sales.


Advertising is another way chatbots make money. Chatbots can earn advertising revenue from businesses by displaying ads within their chat interfaces or recommending products or services to customers. This can be an effective way for chatbots to generate revenue while also providing value to customers.

Data Monetization

Chatbots can also generate revenue through data monetization. By collecting and analyzing data on customer behavior and preferences, chatbots can provide insights that businesses can use to improve their products and services. 

Chatbots can sell access to this data to businesses or use it to inform their own recommendations and services.


Finally, chatbots can generate revenue through licensing agreements. For instance, a third-party vendor may develop a chatbot and be licensed to multiple businesses for use on their websites or social media channels. The vendor can earn revenue from the licensing fees paid by the businesses.

Some Other Ways Chatbots Use to Generate Revenue

  • In-app purchases: Chatbots can also offer in-app purchases of virtual goods or premium features, which can provide a source of revenue for app developers.
  • Donations: Some chatbots, particularly those developed for non-profit organizations or public causes, may rely on donations to support their operations and generate revenue.
  • Customer service fees: Chatbots can also generate revenue for businesses by charging premium customer service or technical support fees. This can be particularly effective for businesses that offer complex or specialized products or services.
  • Affiliate marketing: Chatbots can also earn money through affiliate marketing, recommending products or services, and receiving a commission on any resulting sales.
  • Sponsored content: Chatbots can also earn revenue by displaying sponsored content to customers, such as sponsored messages or sponsored product recommendations.
  • Custom development: Chatbots can also generate revenue by offering custom development services to businesses. For example, a chatbot developer may create a custom chatbot for a business that requires specific functionality or features.
  • White-labeling: Chatbots can also be white-labeled and sold as a service to other businesses, providing a recurring source of revenue for the chatbot developer.

How do chatbots make money?

Chatbots make money for their creators and users in plenty of different ways. Licensing, advertising, subscription services and commission charges are just some of the ways these services can generate income. Data monetization, upselling and cross selling also bring in cash for their creators.


All-in-all, chatbots can make money through a variety of methods. These include lead generation, upselling and cross-selling, and subscription models. 

Moreover, they also generate money using commission-based models, advertising, data monetization and licensing. 

By leveraging these revenue streams, chatbots can provide valuable services to businesses. In contrast, chatbots can also make money by generating revenue for themselves or their developers using these techniques. 

As chatbot technology continues to improve, we can expect to see more innovative ways for chatbots to earn money.

As a tech and AI writer for PC Guide, Gloria is interested in what new technology means for the future of consumer electronics and digital and broadcast journalism.