ChatGPT app downloads are slowing down, BofA finds

AI may be the hottest thing in tech, but OpenAI’s ChatGPT isn’t ready for the challenge Google’s Grip is the search engine leader, according to the latest analysis from BofA Securities.

Bank of America analyst Justin Post wrote in a note Wednesday that analysts, citing data from Sensor Tower, found app downloads for ChatGPT and Microsoft Bing had slowed in recent weeks.

ChatGPT downloads on iPhones in the US fell 38% month-on-month in June, the report said. Downloads of the Bing app, which includes the ChatGPT-based chatbot in the US, also fell 38% in June.

The report quoted SimilarWeb data as saying that Google’s search engine market share rose slightly year-on-year to more than 92%. The market share of Microsoft’s Bing, which uses OpenAI’s ChatGPT technology, fell 40 basis points year-over-year to about 2.8%.

Attention to ChatGPT and similar large language models (LLMs) is slowing, highlighting the investment risks of companies such as Google Microsoft, who poured billions of dollars into thinking that recent advances in artificial intelligence could create the next generation of search engines to replace the current winners.Both companies, along with other tech giants such as Nvidiaand invested hundreds of millions of dollars in artificial intelligence startups.

But if ChatGPT’s adoption has slowed, it could be a sign that the technology may not seriously threaten Google’s dominance in search, and the company may have to find other applications for LL.M., such as a new advertiser tool, analysts wrote. .

“As for Google stock, LLM’s concerns about Google search appear to have shifted from market share risk to monetization risk, but with search share seemingly healthy, Google may be in less rush to integrate LLM (chat) results into commercial queries, ’” Post wrote in the Wall Street Journal. notes.

The ChatGPT app was released in May and is currently only available for the iPhone. Bank of America analysts believe the upcoming Android version of the OpenAI app could boost adoption.

In addition to the app or the Bing search engine, ChatGPT users can also access the chatbot through its website. Bank of America analysts estimate that ChatGPT’s traffic is down about 11% month-on-month, with just over 51 million weekly visits, accounting for only about 2% of Google’s estimated web traffic.