A new study, “The Economic and Workforce Impacts of Open Source AI,” released today by Linux Foundation (LF) Research and commissioned by Meta, finds that many organizations adopt open source AI models because they’re more cost effective. Two-thirds of organizations surveyed believe open source AI is cheaper to deploy than proprietary models, and nearly half of those organizations cite cost savings as a reason for choosing open source AI.
The immediate economic benefits of open source AI – used in some form by almost nine out of ten (89%) organizations that leverage AI – are key to its appeal. “The findings in this report make it clear: open source AI is a catalyst for economic growth and opportunity. As adoption scales across sectors, we’re seeing measurable cost savings, increased productivity and rising demand for AI-related skills that can boost wages and career prospects. Open source AI is not only transforming how businesses operate – it’s reshaping how people work,” said Hilary Carter, SVP of Research at The Linux Foundation.
Creating Cost Efficiency
Open AI models like Llama are accessible to anyone at a low cost, or even for free, making it easier for developers to leverage them, drive growth and transform the way they do business. According to the research study, open source AI:
- Helps smaller businesses: The study shows that smaller businesses – like many of those to whom we awarded this year’s Llama Impact Grants – use agile, low-cost open source AI at a higher rate than larger ones do. Because small and medium businesses are so often the engine of new ideas and products, this shows the value of open source AI in propelling the innovation economy and helping cutting-edge enterprises be more competitive.
- Reduces costs: Researchers estimate that companies would have to spend 3.5 times more if open source software didn’t exist, and that as AI adoption increases, open source models will drive even more cost savings than traditional open source software.
- Creates potential revenue gains: AI’s 50%+ reduction in business unit costs – for example by simplifying previously complex processes – suggests that open source AI holds great potential for increasing revenue and helping businesses do more with their resources.
The report also notes that holding AI-related skills could increase a worker’s wages up to 20%, emphasizing the importance of workforce development in the AI age.
Spotlighting Manufacturing and Healthcare
Open source AI is poised to transform several industries, including manufacturing, where the flexibility of open AI models – the ease of customization stemming from their open source code – allows them to be smoothly integrated into operational workflows. A report by McKinsey & Company cited in the study predicts that AI will boost the advanced manufacturing industry by $170-$290 billion, for example by automating factory tasks and order management.
Another example is healthcare. Hospital systems and physician practices are resource-limited environments where free and flexible tools like open source AI can save lives by aiding in patient diagnostics and early disease detection. McKinsey projects that the global healthcare sector stands to gain $150-$260 billion in value from AI once it’s applied at scale across business functions.
Open AI Models Are Becoming the Industry Standard
These data points show how open AI models, like Meta’s Llama, are driving innovation, growth and competition by providing powerful and accessible AI solutions.
The LF report demonstrates – by the numbers – how essential open source AI is in establishing a strong, stable and secure economy for the decades ahead. Explore the report to see these economic impacts in full.