• Mon. Apr 15th, 2024

Microsoft Profiting from LinkedIn Premium and AI Tools’ Popularity

BySamantha Johnson

Mar 11, 2024
Microsoft Profiting from LinkedIn Premium and AI Tools’ Popularity

LinkedIn revealed the revenue it generated from premium subscriptions for the first time since being acquired by Microsoft. The job-networking platform disclosed that it made $1.7 billion from its premium subscribers in 2023, with a 25% year-on-year increase in the number of subscribers attributed to the utilization of AI tools. The company’s COO, Dan Shapero, shared that over 70% of premium users are using AI tools for various purposes, including writing posts and comments, as well as receiving profile recommendations. Additionally, early tests showed that 90% of subscribers found the AI-powered job experience to be useful.

Microsoft previously reported that LinkedIn’s revenue had grown by 9% in the last quarter, along with a significant increase in membership growth for over two years. LinkedIn’s premium subscription plans, “Premium Career” and “Premium Business,” are priced at $29.99 and $59.99 per month, respectively, with more AI features expected to be introduced in the future. Shapero indicated that the company is focused on leveraging AI to enhance user success in their careers, businesses, and job searches.

On the other hand, LinkedIn faced challenges last year when it had to lay off more than 1,400 employees in two rounds of cuts. The October layoffs were leaked prematurely when a list of about 500 names was posted on the anonymous workplace forum Blind before the official announcement. LinkedIn’s HR team had created a distribution list of the names on a third-party system, GroupID, which was then leaked online. The company did not immediately respond to requests for comment on the situation.

If you have insights to share or work for LinkedIn, you can contact the reporter at jmann@businessinsider.com using a non-work email.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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