A recent study titled "The Economic and Workforce Impacts of Open Source AI," conducted by Linux Foundation Research and commissioned by Meta, reveals that open source AI models are increasingly adopted due to their cost-effectiveness. According to the findings, two-thirds of surveyed organizations consider open source AI more affordable than proprietary alternatives, with nearly half citing cost savings as a primary reason for their choice.
Open source AI is currently utilized in some capacity by 89% of organizations using AI, highlighting its immediate economic benefits. Hilary Carter, Senior Vice President of Research at The Linux Foundation, stated, "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."
The report emphasizes the creation of cost efficiency through open AI models like Llama, which are accessible at low or no cost. This accessibility enables developers to leverage these models to drive growth and transform business operations. Smaller businesses are reportedly using agile, low-cost open source AI at higher rates than larger enterprises, underscoring its value in promoting innovation and competitiveness.
Researchers estimate that companies would incur costs 3.5 times higher without open source software. As AI adoption grows, these models are expected to offer even greater cost savings compared to traditional software solutions. Furthermore, open source AI's ability to reduce business unit costs by over 50% indicates significant potential for revenue gains.
Holding skills related to AI could increase workers' wages by up to 20%, stressing the importance of workforce development in this field.
The study highlights manufacturing and healthcare as industries set for transformation through open source AI. In manufacturing, the flexibility of open models allows seamless integration into workflows. A McKinsey & Company report cited in the study predicts a $170-$290 billion boost for advanced manufacturing from automation and order management improvements.
In healthcare settings with limited resources like hospitals and physician practices, free and flexible tools such as open source AI can enhance patient diagnostics and early disease detection capabilities. McKinsey projects a $150-$260 billion value gain globally from widespread application of AI across healthcare functions.
These insights indicate that open AI models like Meta's Llama are becoming industry standards by driving innovation, growth, and competition through accessible solutions.
The LF report underscores the essential role of open source AI in building a robust economy for future decades. For more detailed insights into these economic impacts, refer to the full report.