“If you don’t find a way to make money while you sleep, you will work until you die.”
– Warren Buffett
How many times have we heard this famous quote from Warren Buffett, but did we ever care enough to act upon it? The answer might be a mix of Yes and No, with most being “NO”. The idea of having multiple passive income sources is not only dinner table talk for money-hungry people but also for people who prefer a modest life.
However…..
Life’s challenges often take a toll on our residual income ideas, and no sooner than later, these ideas wither away. However, it’s time to breathe new life into these second income ideas with the help of AI and automation.
In this blog, we will share passive income ideas for young adults that can be brought to life through the use of Artificial intelligence.
#1 Develop Digital Products
AI-generated digital products are a valuable additional income stream that requires minimal to no maintenance once completed. To develop this passive side income source, you can use tools like ChatGPT, Gemini and more to write ebooks, guides, journals, or planners, and design them with Canva or Midjourney.
Once created, upload them to platforms like Amazon KDP or Etsy. Products such as self-help ebooks, daily planners, and children’s storybooks with AI-generated illustrations are in high demand.
#2 Faceless-Content Distribution Channels
Not okay with writing? Or your writeup sucks? No worries, for this passive income source, you can use AI models like Grok, Gemini, etc, to run faceless channels on platforms like YouTube, TikTok, or podcasts. You can use ChatGPT to write scripts, ElevenLabs for voice overs, and Pictory or Lumen5 to turn text into engaging videos.
These videos can cover niche topics such as motivation, finance tips, or trending news. Once published, content becomes an income-generating asset that continues to earn through ad revenue, affiliate links, or sponsorships.
#3 AI SaaS Tools
Creating a simple AI-powered SaaS (Software as a Service) tool is a powerful way to develop a passive income resource. You can build niche tools like an AI resume generator, personalised workout planner, or an email subject line optimiser. With platforms like Bubble or Webflow and AI APIs from OpenAI or Stability, even non-developers can launch micro-SaaS products.
Also read: The Digital-First Economy: Innovation or Disruption?
Market through SEO or social media. As more users sign up, your monthly revenue increases without requiring additional effort. This model scales into a reliable second income source.
#4 AI Prompt Templates
Selling AI prompt templates is a low-effort, high-impact residual income idea. Prompts are basically detailed instructions you give to AI tools like ChatGPT, Midjourney, or DALL·E to generate content or images. Why does this passive income idea work?
Many people want high-quality prompts but don’t know how to craft them—this is where you come in. Create packs of prompts for writing, design, coding, or marketing and sell them on platforms like Gumroad or PromptBase.
#5 Sell Artwork
AI art tools like Midjourney, Leonardo.ai, and DALL·E let you create stunning visuals in minutes. You can create artwork, illustrations, patterns, or themed designs and sell them as stock images or printed products to generate passive income.
Platforms like Redbubble, Teespring, and Zazzle enable you to upload these designs for sale on mugs, T-shirts, posters, and more. Alternatively, sell digital files on Shutterstock or Adobe Stock. Once uploaded, you earn royalties or sales income as passive side income every time someone downloads or purchases your content.
#6 Sell Courses/Templates
Creating and selling digital courses or templates using AI is a smart way to build passive income. You can use GenAI tools to write course content or guides, and Canva or Notion to design business templates, resumes, or productivity planners. Marketplaces like Gumroad, Udemy, and Etsy enable creators to reach a global audience.
You create the product once and profit from every sale for an indefinite period. Educational content, especially in trending niches like AI, freelancing, or personal development, is in high demand. Bundling products, offering add-ons, or upselling coaching can further boost profits with minimal ongoing work.
#7 Automated Newsletters
AI-powered newsletters are another passive income idea worth considering. It allows you to build an engaged audience and earn income through subscriptions, sponsorships, or affiliate promotions. Use Gemini to write content summaries, insights, or trending news in a specific niche (e.g., AI, productivity, crypto, marketing).
Platforms like Beehiiv, Substack, or ConvertKit automate scheduling, delivery, and subscriber management.
Once your newsletter grows in followers, brands may pay to advertise within it. Add affiliate links or promote your digital products for extra income. With automation and repurposed AI content, newsletters can be set on autopilot, offering consistent, passive returns each week or month.
