ChatGPT app downloads are slowing down, BofA finds

AI whitethorn beryllium the hottest happening successful the exertion industry, but OpenAI's ChatGPT is not connected gait to situation Google's grip arsenic the hunt motor leader, according to caller investigation from Bank of America Securities.

Analysts recovered that app downloads for ChatGPT and Microsoft Bing person slowed successful caller weeks, citing Sensor Tower data, BofA expert Justin Post wrote successful a enactment connected Wednesday.

ChatGPT downloads connected iPhones successful the U.S. were down 38% month-over-month successful June, according to the note. Bing app downloads, which includes a ChatGPT-based chatbot successful the U.S., were besides down 38% successful June.

Google's hunt motor marketplace stock is somewhat up year-over-year astatine implicit 92%, according to the note, citing SimilarWeb data. Microsoft's Bing, which uses OpenAI's ChatGPT technology, was down 40 ground points connected an yearly ground to astir 2.8% of the market.

The slowing attraction for ChatGPT and akin ample connection models, oregon LLMs, highlights the concern hazard for companies similar Google and Microsoft, which person funneled billions of dollars into the thought that caller AI advances could make a next-generation hunt motor to displace the existent winner. Both companies, arsenic good arsenic different other tech giants similar Nvidia, are besides investing hundreds of millions successful AI startups.

But if ChatGPT adoption is already slowing, it could bespeak that the exertion whitethorn not earnestly endanger Google's dominance successful hunt — and companies mightiness person to find different applications for LLMs, specified arsenic in caller advertiser tools, the analysts wrote.

"As for Google's stock, LLM concerns for Google hunt person seemingly shifted from marketplace stock hazard to monetization risk, but with hunt stock seemingly healthy, Google whitethorn person little urgency to integrate LLM (chat) results into commercialized queries," Post wrote successful the note.

The ChatGPT app was released successful May and truthful acold is lone disposable for iPhones. Bank of America analysts judge that a forthcoming OpenAI app for Android could boost adoption.

Besides the app oregon Bing hunt engine, ChatGPT users tin besides entree the chatbot done its website. Bank of America analysts estimation visits to ChatGPT were down astir 11% connected a monthly ground to conscionable implicit 51 cardinal visitors per week, oregon astir lone 2% of Google's estimated web traffic.