The AI App Gold Rush Reveals a Harsh Truth About Value

"Everyone and their mother is peddling an AI application." This blunt observation from the Financial Times, buried in their subscription sales pitch, cuts straight to the heart of today's AI market reality.

The Great AI App Deluge

Two years after ChatGPT burst onto the scene, we're drowning in AI applications. App stores overflow with "AI-powered" everything. Startups slap "artificial intelligence" on their pitch decks like a magic spell. Yet here's FT, one of the world's most respected business publications, using this very saturation to sell their $299 annual subscription.

The irony isn't lost. While everyone races to give away AI for free, FT is doubling down on paid, premium content. Their message is clear: in a world where AI apps are commoditized, trusted, quality information becomes more valuable than ever.

The Free Lunch Paradox

Most AI startups face a brutal reality. They hook users with free services but struggle to monetize. Even OpenAI, despite ChatGPT's massive adoption, generates real revenue primarily from paid subscriptions. The free tier is marketing; the premium tier is business.

FT's aggressive subscription push—promising "40% savings" and emphasizing "trusted journalism"—signals something bigger. It's a bet that consumers will pay for quality amid the noise. While AI apps multiply like digital rabbits, discerning users increasingly value curation over quantity.

The Shakeout Begins

This isn't just about news media. Across industries, the AI app boom is hitting economic reality. Server costs, development expenses, and customer acquisition fees don't disappear because you slap "AI" on your product. Companies that can't transition from free to fee will vanish.

Look at recent moves by major players. Microsoft charges for advanced Copilot features. Google limits free Bard usage. Adobe embeds AI into existing subscriptions rather than offering standalone freebies. The pattern is clear: AI is becoming a premium feature, not a free commodity.

The Value Question

What makes FT's positioning particularly shrewd is timing. As AI-generated content floods the internet, human-curated, fact-checked journalism becomes scarce. When anyone can generate articles, analysis, or reports with AI, the premium shifts to verification, context, and trust.

This creates a fascinating market dynamic. While AI democratizes content creation, it simultaneously increases demand for authoritative sources. FT isn't competing with AI apps—it's positioning itself as the antidote to AI noise.

The question isn't whether AI apps will survive—many won't. It's whether businesses can evolve from attention-grabbing freebies to value-delivering services worth paying for.