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AI Market Clarity

blog.eladgil.com

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Re: AI Market Clarity

#11

Post by riskassessment »

chancemehmu wrote: post #8
deadbabe wrote: post #4

Earlier quoted context omitted.

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

hardly forever. Given the age of the company you're citing, they can only estimate retention out to 1 year.

Re: AI Market Clarity

#12

Post by dingnuts »

chancemehmu wrote: post #8
deadbabe wrote: post #4

Earlier quoted context omitted.

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

none of these companies have existed long enough to make claims about users staying around "forever"

Re: AI Market Clarity

#13

Post by bee_rider »

morkalork wrote: post #10
bmau5 wrote: 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.

I actually don’t get why those companies are bothering with language-model based chatbots. They already have customer service that can’t do anything. Why do you need a language model? Might as well just use:

   printf(“All of our customer service agents are busy, but leave a message and we’ll get back to you never.”)

Re: AI Market Clarity

#14

Post by codingdave »

chancemehmu wrote: post #8
deadbabe wrote: post #4

Earlier quoted context omitted.

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

Their charts measure 50 weeks, not forever. So an 80% yearly churn is not exactly a good statistic. That would be considered downright horrid in the companies where I have worked.

Re: AI Market Clarity

#15

Post by samtp »

I would love to hear some clear use cases that people are actually using AI agents for in production on non-trivial matters. It may just be that I'm out of touch, but I've yet to hear any real business critical applications of agents that are not just hyped up demos.

Re: AI Market Clarity

#16

Post by paulddraper »

bmau5 wrote: 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…

My experiences with AI chatbots are that they respond quickly, instead of waiting between the time of 9 and 5 and being put on hold for hours.

They don't solve every issue every time, but enough.

Re: AI Market Clarity

#17

Post by fxtentacle »

chancemehmu wrote: post #8
deadbabe wrote: post #4

Earlier quoted context omitted.

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

That chart says:

50% leave within 1 week

75% leave within 5-10 weeks

85% leave within a year

Re: AI Market Clarity

#18

Post by thesumofall »

paulddraper wrote: post #16
bmau5 wrote: 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…

My experiences with AI chatbots are that they respond quickly, instead of waiting between the time of 9 and 5 and being put on hold for hours. They don't solve every issue every time, but enough.

Agree. If one is on the happy path, it’s perfect. Otherwise, the better companies have a smooth handover to a human who then already had an AI check all the basic questions (who are you? What do you want? Have you tried switching it off and on again?)

Re: AI Market Clarity

#20

Post by jcranmer »

chancemehmu wrote: post #8
deadbabe wrote: post #4

Earlier quoted context omitted.

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

If I'm reading that right, 60% of their users give up after the first week, half of those who stick with it give up after another month or two, and then there appears to be continued decline afterwards.

Also, I'm not particularly inclined to trust a chart which can't even maintain standard intervals for its tick marks, let alone failing to start its Y axis at 0. Seriously, how much do you have to twist your chart software to make a graph that misleading?

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