Apple may charge users up to $20 for advanced artificial intelligence (AI) features, according to analysts, as the company seeks to enhance its profitable services business. The Cupertino-based tech giant plans to introduce Apple Intelligence, its upcoming AI system, on select devices later this year.

Announced in June, Apple Intelligence promises to enhance the Siri voice assistant and introduce features such as automatic email and image generation. Although the rollout will be gradual and initially exclude regions like China and Europe, analysts suggest Apple might introduce a subscription model for the premium AI features.

Neil Shah, a partner at Counterpoint Research, noted that AI investment is costly, and Apple is likely to pass these expenses on to its users. “Software and services make it more lucrative for Apple to include it in the Apple One subscription model,” Shah explained in a recent CNBC interview.

Apple One, priced at $19.95 per month, provides access to various Apple services, including Apple Music. Shah estimates that Apple could charge between $10 and $20 for the advanced features of Apple Intelligence, potentially bundling it within Apple One.

Apple’s services division generated $24.2 billion in revenue during the June quarter, distinguishing the company from many hardware firms that have struggled to monetize software. “Apple is one of the few connected devices companies that has successfully monetized its value-added services,” Ben Wood, chief of research at CCS Insight, told CNBC. Wood added that Apple’s users are accustomed to paying for premium services, making it plausible for the company to charge for advanced AI features within Apple Intelligence.

Wood also mentioned that Apple Intelligence could be integrated into a bundled subscription service, offering various services under a single price. However, Apple may be cautious about diluting revenue from individual product subscriptions.

Charging for AI features is not uncommon among tech companies. For instance, OpenAI charges for advanced ChatGPT features, and Microsoft has a fee for its AI Copilot tool. Apple’s main competitor, Samsung, is exploring various revenue models for its AI services, known as Galaxy AI. Shah emphasized that AI could further solidify Apple’s customer loyalty, as Apple Intelligence would learn from user behavior and become more personalized. “The beauty of AI is that it learns more about you the more you use it, which locks you into the model because you can’t transfer your personalized AI from Apple to Android,” Shah explained. “This increased usage and dependence enhance Apple’s monetization opportunities.”