Live data from Hacker News

AI Market Clarity

blog.eladgil.com

1–10 of 105 posts

Re: AI Market Clarity

#2
I think the companion market is probably the most overlooked market in AI. Character AI is the most used AI app after ChatGPT worldwide, and generally what all the teens associate AI with.

I am seeing companies like Dippy AI (character ai competitor for gen-z) scale from 0->10M+ users rapidly without many people noticing.

Re: AI Market Clarity

#3
Customer Service keeps being touted as a success story of LLMs, but as a business owner and user I'd be very curious to see if it actually improves any UX CS metrics (NPS, CSAT) - as my experiences with AI chatbots are almost always negative. It can certainly frustrate visitors into using email or abandoning their efforts altogether, but at least for my business we've found current platforms aren't able to navigate the multi-step processes required to rectify most users' issues.

Re: AI Market Clarity

#4

I think the companion market is probably the most overlooked market in AI. Character AI is the most used AI app after ChatGPT worldwide, and generally what all the teens associate AI with. I am seeing companies like Dippy AI (character ai competitor for gen-z) scale from 0->10M+ users rapidly without many people noticing.

The churn is brutal. Once people have gotten over the novelty of an AI companion they quickly grow disatisified with the limitations and leave. It’s a lot like a game that people play with for a bit then leave when they’ve done everything they can do.

Re: AI Market Clarity

#7
post #3

Customer Service keeps being touted as a success story of LLMs, but as a business owner and user I'd be very curious to see if it actually improves any UX CS metrics (NPS, CSAT) - as my experiences with AI chatbots are almost always negative. It can certainly frustrate visitors into using email or abandoning their efforts altogether, but at least for my business we've found current platforms aren't able to navigate t…

Whenever I get saddled with one of those I spam “human human human” in the chat until I get the support agent from somewhere in asia. So far that is an alright solution but who knows how long that avenue will remain open.

Re: AI Market Clarity

#8
post #4

I think the companion market is probably the most overlooked market in AI. Character AI is the most used AI app after ChatGPT worldwide, and generally what all the teens associate AI with. I am seeing companies like Dippy AI (character ai competitor for gen-z) scale from 0->10M+ users rapidly without many people noticing.

The churn is brutal. Once people have gotten over the novelty of an AI companion they quickly grow disatisified with the limitations and leave. It’s a lot like a game that people play with for a bit then leave when they’ve done everything they can do.

That's not what the numbers coming from some of these companies say — for example, chai app, publicly shares that their W52 retention is 20%.

So, 20% of users who send a message just retain forever.

Source: https://www.chai-research.com/chai_roadmap_2025.pdf

Re: AI Market Clarity

#9
post #5

Elad is an investor of these companies, not an independent researcher

I find it really funny to read "I invested early in X" and then shortly later read "X has won this category of business" from the same author.

Gives the same vibe as those 'popular alternatives to X' blog posts written by one of the vendors, placing their offering as #1 and picking mediocre competitors to compare themselves against.

Re: AI Market Clarity

#10
post #3

Customer Service keeps being touted as a success story of LLMs, but as a business owner and user I'd be very curious to see if it actually improves any UX CS metrics (NPS, CSAT) - as my experiences with AI chatbots are almost always negative. It can certainly frustrate visitors into using email or abandoning their efforts altogether, but at least for my business we've found current platforms aren't able to navigate t…

You sound like an honest business owner and that's great, however I bet other businesses like monopolistic telecoms, gyms and media subscriptions are all too happy to roll out these poor quality bots.
Post reply on HN