This AI service is surpassing ChatGPT in young age group

 


Character.ai, the innovative AI app that empowers users to craft their very own AI characters, is gaining ground in the United States, challenging the supremacy of ChatGPT in the mobile app arena. Recent data from market intelligence firm Similarweb reveals that Character.ai's iOS and Android apps, supported by a16z, now boast 4.2 million monthly active users in the U.S., closing in on ChatGPT's 6 million monthly U.S. active users.

This impressive growth comes on the heels of Character.ai's launch in May 2023, when the startup proudly announced exceeding 1.7 million installs within its inaugural week. Although installs do not necessarily translate into users, let alone active ones, the app's ability to retain early adopters and expand its user base in the months following its debut is remarkable, especially given industry averages indicating a 30-day retention rate of just 3% to 4%, with uninstall rates soaring to over 40% after 30 days, as reported by mobile marketing firm Appsflyer.


However, ChatGPT still maintains a considerable lead over Character.ai on the web. The preference of many Character.ai users to build and interact with their AI chatbots on personal mobile devices, rather than through a website, accounts for this discrepancy. Globally, Android data further reinforces ChatGPT's dominance, with 22.5 million monthly active users compared to Character.ai's 5.27 million.

Nonetheless, Character.ai has carved out a niche by attracting a substantially younger demographic than ChatGPT and other AI apps. Approximately 60% of Character.ai's web audience falls within the 18- to 24-year-old age bracket, a percentage that has remained consistent even as ChatGPT's web traffic declined during the summer months.


In contrast, ChatGPT's July traffic showed a decline in the 18- to 24-year-old age group, dropping from 30% in April to 27%. Similar trends were observed with other AI providers, with lower adoption rates among young adults aged 18 to 24. For instance, Perplexity.ai, Midjourney, Anthropic, and Bard saw percentages of 22.7%, 22.3%, 25.3%, and 18.46%, respectively, among this demographic group.


ChatGPT's website visits also experienced a decline for the third consecutive month, falling by 3.2% to 1.43 billion in August, following 10% drops in each of the two previous months, according to Reuters citing Similarweb's data. Moreover, the average time spent on ChatGPT's website dwindled from 8.7 minutes in March to 7 minutes as of August.

Similarweb postulated that Character.ai's sustained usage during the summer months was due to the app's focus on entertainment rather than serving as a homework aid or research tool. While Character.ai's website traffic dipped slightly during the summer, it was offset by the increasing adoption of Character.ai's iOS and Android apps.

The tide seems to be turning for ChatGPT, as Similarweb's data shows a resurgence in traffic with the resumption of the school year. In August, website visits in the U.S. rose by 0.4%, and unique visitors increased by 3% month-over-month in the U.S. and 0.3% worldwide, reversing the downward trend observed in June and July.

With a massive Series A funding injection of $150 million announced earlier this year, valuing the business at $1 billion, Character.ai has ample room to expand its user base. Investors are placing their bets on Character.ai's founders, Noam Shazeer and Daniel De Freitas, both AI experts who previously led a Google research team responsible for creating LaMDA (Language Model for Dialogue Applications), a pivotal language model in the world of conversational AI.

Sarah Wang, a partner at a16z, praised the founders as "trailblazers in AI for nearly two decades," highlighting the powerful platform that Character.ai has developed. This platform's end-to-end combination of model and application allows Character.ai to continuously enhance its product as more people engage with its characters.

As with any emerging technology, it remains to be seen if Character.ai will maintain its appeal among young users or eventually fade as just another AI trend. Character.ai has yet to respond to Similarweb's data, but we will update this report if they provide additional insights.

Comments

Post a Comment

Popular posts from this blog

AI and data annotation: the hidden labor behind the AI revolution

Image
Artificial intelligence (AI) is transforming the world in unprecedented ways. From chatbots to self-driving cars, AI systems rely on large amounts of data to learn and perform complex tasks. But where does this data come from and how is it processed? The answer is data annotation, a labor-intensive and often overlooked aspect of AI development. Data annotation is the process of labeling data with relevant information, such as categories, keywords, tags, or coordinates. Data annotation helps AI systems understand and interpret the data they are fed, and enables them to produce accurate and reliable outputs. For example, data annotation can help a computer vision system recognize faces, objects, or scenes in an image; or help a natural language processing system understand the meaning and sentiment of a text. Data annotation is not a simple or easy task. It requires human intelligence, attention to detail, and domain knowledge. Depending on the type and complexity of the data, data annot...
Read more

Here are the skills Business Analysts possess

Image
Business Analyst position has become increasingly indispensable in the AI-booming era. As organizations seek to maximize their value, optimize processes, and stay competitive, the demand for skilled professionals who can comprehend complex business problems and provide data-driven solutions has reached new heights. Business analytics, as a growing field, presents exciting opportunities for those looking to make a meaningful impact on the success of organizations across the world. As a senior business analyst with extensive experience in various industries, I am keenly aware of the criticality of communication skills in this domain. In this article, we will explore the key attributes and expertise required to thrive as a successful business analyst, emphasizing how effective communication plays a pivotal role in shaping a rewarding career in this ever-expanding and dynamic field. A skilled business analyst possesses a diverse and dynamic set of abilities that enable them to drive meani...
Read more

Tesla's Dojo Supercomputer: Redefining AI with Unprecedented Computing Power

Image
Tesla's (TSLA) stock is experiencing a remarkable surge in pre-market trading, and the catalyst behind this dramatic upswing is an optimistic report from Morgan Stanley, which underscores the transformative potential of Tesla's cutting-edge Dojo supercomputer. This surge in stock value is a direct result of Morgan Stanley substantially raising its price target for Tesla's stock, emphasizing the game-changing capabilities of Dojo. Dojo stands as Tesla's proprietary supercomputer platform, meticulously engineered from scratch to cater to the demands of AI machine learning, particularly in the domain of video training. Tesla harnesses the wealth of video data generated by its expansive fleet of vehicles and processes it through Dojo's custom-built infrastructure and chips. What sets Dojo apart is its extraordinary computing power, boasting the capacity to perform a staggering 100 Exa-flops of operations by the end of 2024. This mind-boggling computational capability i...
Read more