Joshua D'Costa
Growth & Marketing
Feb 21, 2025
|
5
min
No industry has grown as fast as the Artificial intelligence (AI) industry. The global AI market is projected to grow from $243.7 Billion in 2025 to $826.7 Billion by 2030, with a 27.67% annual growth rate, driven by advancements in machine learning, natural language processing, and automation.
Amid this rapid growth, a new wave of entrepreneurs i.e. AI solopreneurs has emerged.
These solopreneurs are using existing AI tech to create what we call AI wrappers. These wrappers add their unique twist, allowing them to build and sell AI-powered tools, products, and services.
AI solopreneurs don’t start from scratch. They build AI Wrapper, leveraging cloud services like AWS instead of creating their own, and relying on platforms like PostgreSQL for database. Similarly, they need a payment solution that removes complexity and streamlines revenue management.
This is where a Merchant of Record (MoR) steps in. An MoR can simplify backend operations and ensure tax compliance.
In this blog, we’ll explore the rise of AI solopreneurs, the challenges they face, and how a Merchant of Record can make their lives easier.
AI Wrappers and the Rise of AI
Artificial Intelligence is rapidly transforming the way businesses operate, with experts predicting that AI will add an astounding $15.7 trillion to the global economy by 2030. AI’s capability to emulate human intelligence and creativity, coupled with its proficiency in performing complex tasks, is revolutionizing industries and streamlining processes across the board.
According to the KPMG survey, 77% of executives believe generative AI will have a more profound societal impact in the next three to five years than any other emerging technology. In this dynamic landscape, AI wrappers have emerged as a vital tool—that simplifies the integration of sophisticated AI models into products and services, allowing businesses to leverage advanced AI capabilities without needing in-depth technical expertise.
The rise of AI offers numerous benefits including reduced human error, unbiased decision-making, 24/7 operational capacity, and significant cost reductions through efficient data analysis and repetitive task automation. Tasks that once required extensive human labour can now be performed with greater precision and at a lower cost, making AI an indispensable asset for modern enterprises.
AI wrappers play a critical role by bridging the gap between complex AI functionalities and user-friendly applications, enabling a broader range of developers and businesses to innovate and stay competitive in this fast-evolving field.
However, while AI wrappers help solopreneurs focus on innovation, they still face significant operational challenges, particularly in managing compliance, taxes, and payments.
The Challenges Faced by AI Solopreneurs
Limited Resources and Expertise
Most AI solopreneurs are technical experts, not tax or compliance specialists. Managing global sales means navigating complex tax regulations, which can be overwhelming for a one-person team.
Difficulty in Managing Global Sales
Selling to international customers introduces challenges like varying tax laws, currency conversions, and payment method preferences. Without the right infrastructure, solopreneurs risk losing customers or facing legal issues.
Complex Payment Gateway Setup
Setting up and maintaining payment gateways for multiple products is time-consuming and technically challenging. Each gateway comes with its own fees, integration requirements, and limitations.
Time-Consuming Administrative Tasks
From tax filings to subscription management, administrative tasks can eat up valuable time that could be spent on product development and innovation.
How an MoR Makes Life Easier for AI Solopreneurs
A Merchant of Record (MoR) is a service provider that handles end-to-end payment processing, tax compliance, and regulatory requirements on behalf of businesses. For AI solopreneurs, an MoR can be a lifesaver. Here’s how:
Reduced Administrative Burden
A Merchant of Record takes care of tax calculations, filings, and compliance, freeing solopreneurs from tedious administrative tasks.
Faster Time-to-Market
With a Merchant of Record handling backend operations, solopreneurs can launch their products faster and focus on scaling their businesses.
Improved Customer Experience
Merchant of Record supports multiple payment methods and currencies, ensuring a seamless checkout experience for customers worldwide.
Cost-Effectiveness
Outsourcing to an MoR eliminates the need for hiring additional staff or investing in expensive software, making it a cost-effective solution for solopreneurs.
An Ideal MoR for AI Solopreneurs
When choosing an MoR for AI solopreneurs Dodo Payments stands out as an ideal Merchant of Record (MoR), offering a suite of features tailored to streamline global operations and support rapid growth:
Easy Setup and Integration
Dodo Payments provides a quick, hassle-free onboarding process that enables AI solopreneurs to accept payments in no time, allowing for a smooth transition from development to market.
Global Tax and Compliance Support
The platform automates tax calculations and filings across various regions, ensuring full compliance with local regulations so businesses can focus on innovation without the burden of complex legal requirements.
Multiple Payment Options
With support for 25+ local payment methods (including Google Pay, UPI, Apple Pay etc,..) and multiple currencies, Dodo Payments caters to a global audience, enhancing customer accessibility and boosting conversion rates.
Subscription Management
Tools for managing recurring payments and subscriptions make it easier for AI solopreneurs to monetize their products effectively, providing consistent revenue streams.
Fraud Prevention and Security
Built-in fraud detection and secure payment processing are critical for protecting the business and its customers.
Conclusion
Artificial Intelligence is destined to transform numerous industries and lives through applications that increase productivity and efficiency, enhance decision making and more.
AI solopreneurs are revolutionizing industries by leveraging AI wrappers to build innovative, cutting-edge solutions. Managing complex compliance, tax obligations, and international payment processing becomes a significant hurdle.
By partnering with a Merchant of Record (MoR), AI solopreneurs can simplify backend operations. Select a Merchant of Record, that provides factors like pricing, supported countries, integration capabilities, and customer support.
Dodo Payments offers a comprehensive MoR solution for Solopreneurs, with features like global tax support, multiple payment options, and easy integration.
Simplify your payment and compliance processes. Start your journey with a Merchant of Record today!
