LONDON, July 28 -- Samsung is preparing to test whether consumers will pay for artificial intelligence (AI) on smartphones as soaring memory chip prices and the rising cost of running AI services squeeze margins. The company is considering a monthly subscription for users who rely heavily on Galaxy AI as it looks to offset those costs, Samsung Southwest Asia president and chief executive JB Park said.

The move reflects a broader shift in the smartphone industry, where AI is becoming a recurring service rather than just a hardware differentiator, with ongoing computing costs.

"Galaxy AI features are free for consumers, but they are a huge cost for Samsung even though they might involve on-device features like Photo Editing. AI features r...