Title: The Real Reason Behind ChatGPT’s User Decline and the Rise of GPT-4
In a surprising turn of events, the popular AI chatbot ChatGPT has experienced a decline in website visits, signaling a potential decrease in consumer interest in AI chatbots and image generators. Recent data from SimilarWeb reveals that global desktop and mobile traffic to the ChatGPT website dropped by 9.7% in June compared to May, while unique visitors decreased by 5.7%. Additionally, the amount of time visitors spent on the website decreased by 8.5%.
So, what could be causing this decline? ChatGPT has evolved from a general-purpose chatbot to a specialized platform thanks to its recent ChatGPT Plugins and Code Interpreter upgrades. These upgrades have shifted the chatbot away from general use cases, prompting users to realize its true potential. Users are now willing to subscribe to ChatGPT Plus, which is powered by both GPT-3.5 and the upcoming GPT-4, and take advantage of the integration of the ChatGPT API.
OpenAI recently announced API access to more customizable versions of its software for other technology companies and corporate enterprises. As a result, traffic to the platform.openai.com developer’s website increased by 3.1% from May to June.
Some experts speculate that the novelty of generative tools may be wearing off, while others attribute the reduced usage of ChatGPT to school and college students being on vacation. There are also concerns about AI hallucinations, where the chatbot produces inaccurate or unsatisfactory responses.
However, a closer look reveals that the decline in website traffic may be due to the availability of the paid subscription service, ChatGPT Plus, and the API. By subscribing to ChatGPT Plus, users gain access to the improved experience offered by GPT-4. Consequently, it is likely that only free users are contributing to the decline in traffic.
OpenAI has not yet made an official announcement about the decrease in ChatGPT users, leaving room for further speculation. It is worth mentioning that a similar pattern was observed with the text-to-image platform Midjourney, which experienced a dip in users after discontinuing its free service and transitioning to a fully paid subscription model.
Unlike Midjourney, ChatGPT experiences a drop in users for both the free and paid versions since they are accessed through the same website. However, it remains uncertain how long the free ChatGPT service, based on GPT-3.5, will continue. OpenAI has assured users of its commitment to offer free access availability to as many people as possible, but the sustainability of this business model remains questionable, especially considering that GPT-4 is available for free as part of Bing.
ChatGPT Plus, which offers GPT-4 to subscribers, appears to be driving the conversion from free to paid users. This ongoing shift is already reflected in the decline in users and may help reduce the operational and upkeep costs described by Sam Altman, OpenAI’s CEO, as eye-watering.
Anthropic, an AI lab in San Francisco, has recently unveiled Claude 2, a new ChatGPT rival that is open to the public in the US and the UK. Beta testers have praised Claude 2 for its superior handling of documents, especially PDFs, an area where GPT still struggles. Additionally, Claude 2 boasts a highly sophisticated understanding of documents and maintains the most pleasant AI personality.
With alternatives like Bard and Pi emerging, retaining users on the free version of ChatGPT (based on GPT-3.5) will require continuous reinvention and the introduction of new features. This could involve granting limited access to ChatGPT Plugins and the ChatGPT Interpreter, which is bound to attract more users and conversions.
While the decline in users continues, OpenAI finds itself in a slightly advantageous position. The growth of paid subscribers coupled with the slowdown in user engagement on the free version creates an ecosystem of quality customers. OpenAI remains committed to offering free access, recognizing the importance of catering to a wide range of users.
Overall, the decline in ChatGPT users is due to the availability of the ChatGPT Plus subscription and API access, which provide users with access to GPT-4. This shift towards a paid model has sparked speculation and raises questions about the sustainability of free access. However, OpenAI’s efforts to convert free users to paid subscriptions and the rise of new competitors make this an evolving landscape that promises interesting developments in the future.
