UK’s AI subscription surge: spending rockets from near zero to £1bn in three years
UK consumer spending on AI products has grown from almost nothing in early 2023 to a billion-pound annual market, according to new analysis. Who Pays for AI? has been published by the University of Warwick’s Centre for Competitive Advantage in the Global Economy (CAGE) and shows that an estimated one in 20 adults now take out personal paid subscriptions for artificial intelligence tools, with subscriber numbers roughly doubling each year.
The researchers at the University of Warwick and Imperial Business School used anonymised bank and card transactions to explore who pays for AI, how the average subscriber is changing, and how competition between providers is reshaping the market. The study finds that overall:
- under-30s are five times as likely to pay for AI than over-60s,
- men are 27% more likely to subscribe than women,
- the top fifth of earners are almost twice as likely to subscribe than the bottom fifth
- Personal subscriptions are more common in office-based roles, with 16% subscribing to an AI tool, compared to 2.5% of nurses and midwives.
But the data also showed big changes in the demographic of more recent subscribers, with a broader cross-section of the population now signing up to paid AI for the first time.
- After being outnumbered by men three to one among early subscribers, women are now nearly drawing level, with the gap in 2026 falling to just 1.2 to one.
- Early subscribers earned 70% above the average worker’s pay, but this premium has dropped to 30% among more recent new subscribers.
The research also examined which AI tools are the most popular in the UK. They found that ChatGPT remains the market leader, but Claude has gained ground rapidly, increasing its share of subscription spending from 7% to 29% between December 2025 and July 2026. ChatGPT’s share fell from 74% to 53% over the same period. Claude’s growth also reflects uptake of more expensive plans, particularly among people working in technical and professional roles.
Commenting on their results, Dr Peter Lambert from University of Warwick’s Department of Economics said: “Millions of people are now putting their hands into their own pockets to pay for AI every month. In little more than three years, these tools have become a billion-pound consumer market in the UK. This surge has been phenomenal and with only one in twenty adults currently subscribing, there’s still room for further growth. The big question is how many people currently using free AI tools will eventually decide they are worth paying for.”
Dr Nikhil Datta from the University of Warwick’s Department of Economics added: “People whose jobs involve tasks that AI can help with are more likely to pay for it themselves, so that suggests people are buying these tools partly for what they can do for them at work. The first paying customers were disproportionately men and high earners, but that picture is changing rapidly with women now making up nearly half of new subscribers.”
Dr Patrick Schneider from Imperial Business School said: “Like many early-stage markets, the picture can change very quickly. ChatGPT still leads at present, but its early dominance is shrinking. Claude captured almost a third of consumer subscription spending by July, up from just 7% seven months earlier.”
ENDS
Notes to Editors
For more information, including the full paper, methods, interactive charts and downloadable data packs, visit the Who Pays for AI? website.
Who Pays for AI? is authored by Nikhil Datta (University of Warwick and Centre for Economic Performance, London School of Economics), Peter John Lambert (University of Warwick and Centre for Economic Performance, London School of Economics) and Patrick Schneider (Imperial Business School).
The study tracks personal payments for standalone AI products, including estimates of subscriptions purchased through mobile app stores. It does not measure free use or licences paid directly by employers.
For more information please contact:
Ann Baylis, Media and Communications Officer
ann.baylis@warwick.ac.uk | +44 (0) 7425 722087
About the University of Warwick
Founded in 1965, the University of Warwick is a world-leading institution known for its commitment to era-defining innovation across research and education. A connected ecosystem of staff, students and alumni, the University fosters transformative learning, interdisciplinary collaboration and bold industry partnerships across state-of-the-art facilities in the UK and global satellite hubs. Here, spirited thinkers push boundaries, experiment and challenge convention to create a better world.
The ESRC Centre for Competitive Advantage in the Global Economy (CAGE) was founded in 2010 to examine routes to success for both developed and emerging economies around the world. Since then, the centre has used historical and theoretical economic analysis to integrate the study of history and address real-world policy issues. Based in the department of economics at the University of Warwick, the centre delivers policy-driven economics research informed by culture, history and behaviour. Our research findings have been used by policymakers, journalists, practitioners and the general public to drive policy debate and reform opinion.
About Imperial Business School
Imperial College Business School is the business school of Imperial College London, a public research university specialising in science, technology, engineering, medicine and business (STEMB). Based in the South Kensington district in London, the School blends business education with entrepreneurship and technology innovation to convert pioneering scientific discovery into commercial, societal, and sustainable solutions.
6/11/26
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