LinkedIn Sees 25% Leap in Subscriptions While Adding AI Tools

LinkedIn’s premium subscription segment reportedly earned $1.7 billion in revenue in 2023.

During the same year, the social networking platform for professionals saw a 25% leap in the number of premium subscribers, Reuters reported Thursday (March 7), citing its interview with LinkedIn Chief Operating Officer Dan Shapero.

LinkedIn, which was acquired by Microsoft in 2016, amassed a total of $15 billion in fiscal 2023, with $7 billion of that total originating from its hiring software designed for corporate recruiters, according to the report.

The notable uptick in the company’s premium subscription service, which starts at $39.99 per month, was driven in part by the integration of members-only features that include artificial intelligence (AI) tools aimed at enriching user experience and efficacy in job hunting and recruitment, the report said.

For example, LinkedIn has introduced AI features that can scrutinize a job posting against a seeker’s resume to ascertain a potential match, per the report.

This AI also extends its capabilities to enhance users’ profiles to attract recruiters and to auto-generate communication to engage potential employers, the report said.

The acceptance and utility of these AI features have taken off quickly, with early data indicating that 70% of subscribers with access to the new AI tools have tried them, and 90% found them beneficial, according to the report.

Such advancements come at a time when the labor market is characterized by its tightness, albeit unevenly across different sectors, the report said. With LinkedIn’s insights showing that there are two applicants for every job, the uncertainty in the global economy propels professionals to leverage every tool at their disposal to secure the roles they seek, per the report.

When announcing the launch of its AI tools for premium subscribers in November, LinkedIn said the new offering is designed to streamline what can be a lengthy process, present members with other “key salient opportunities” and deliver timely information about what’s happening in the world.

In October, Microsoft Chairman and CEO Satya Nadella said during an earnings call that LinkedIn’s paid services such as its premium subscriptions contributed to its earnings growth, with LinkedIn seeing an 8% increase in revenue.