AI Is a Product Companies Sell
AI tools are made by companies. Companies make money from AI — through ads, subscriptions, or selling your data.
Knowing this helps you understand WHY an app might want you to use it more (the more you use, the more money they make).
Three good questions to ask
- Who makes this AI?
- How do they make money?
- What happens to my data?
The big idea: AI is a business. Knowing the business helps you make better choices.
End-of-lesson check
15 questions · take it digitally for instant feedback at tendril.neural-forge.io/learn/quiz/end-explorers-ethics-ai-product
Why do companies want you to use their AI tools as much as possible?
- The government requires companies to track how many people use AI
- More usage means more money for the company through ads or data collection
- Companies want you to share the tool with your friends for free
- The AI becomes smarter by being turned off more often
What does it mean when someone says 'you are the product' about a free AI app?
- You own the AI and can take it home with you
- The AI will break if you do not pay for it
- The company uses your data and attention to make money, not directly from you
- You become an employee of the company
How do most free AI companies make money?
- By charging users a monthly fee
- By selling ads and collecting data from users
- By asking users to donate money
- By selling the AI robots to other countries
What does the term 'retention' mean when talking about AI apps?
- The process of saving your files to the cloud
- How long a company can keep you using their app
- A type of AI error that needs fixing
- A way to make the AI remember your name
Why might an AI app show you advertisements?
- Because the government requires ads in all apps
- To help the AI learn new words faster
- To make money from advertisers who want to reach you
- Because the app is broken and showing wrong content
What is 'data monetization'?
- Deleting your data so no one can use it
- Teaching an AI to count money
- Putting your photos into a special digital wallet
- Making money by collecting and selling information about users
When you use a free AI tool, what are you providing to the company?
- Only your credit card number
- A promise to tell your friends about the app
- Your data, your time, and information that helps train future AI
- Nothing — it is completely free
Why do companies collect information about how you use their AI app?
- To give the information to your school
- To make the app slower on purpose
- To check if you are using a real name
- To understand what you like and show you more targeted ads or products
What is a 'business model'?
- A type of computer program
- A drawing of a store building
- A plan that explains how a company makes money
- A list of all the workers at a company
Before using a new AI tool, which of these questions would be most helpful to ask?
- Who won the AI championship last year?
- How does this company make money from me?
- What color is the company's logo?
- How many servers does the company own?
What typically happens to the information you type into an AI tool?
- It is turned into a video that you can watch
- It is stored by the company and may be used to improve AI or shared with others
- It is sent to your parents automatically
- It is deleted immediately after you close the app
Why do companies want to improve their AI systems?
- Better AI attracts more users, which means more money
- They are required to make AI worse every year
- They want to make the app harder to use
- They want to use more electricity
What is a subscription model?
- Paying a regular fee to use a service, usually monthly or yearly
- Getting the app for free with ads
- Sharing your subscription with strangers
- Buying an AI robot once and owning it forever
Why might a company sell your data to other businesses?
- Because the data takes up too much storage space
- Because the government made them give it away for free
- Because they want to thank you for using the app
- Because your data is valuable and other companies will pay for it
Why is 'retention' important for a company's profits?
- Retention is not important to profits
- Companies want users to stay for exactly one day
- Higher retention means the app will be deleted more often
- Keeping users coming back means the company earns more money over time