Data from Sensor Tower shows that ChatGPT, OpenAI’s new AI-driven conversational platform, is already seeing significant amount of slowdown in downloads and daily users. Recent analyses paint a picture that after an explosive growth since its launch, the app’s growth has leveled off — especially in the U.S. market. This abrupt shift calls into question whether it can sustain its previous period of growth, pointing to stormy waters in the future.
Globally, ChatGPT has seen a decrease in new downloads since hitting a peak in April. This is a warning sign that its eCPM user growth rate has begun to flatline. During this year’s Do More in May, the app’s explosive growth has shrunk to a trickle. Now, industry observers are looking into possible causes for the reversal. Increased competition from other AI platforms has quickly risen to the top as a key concern. Other changes to the nature of ChatGPT’s underlying AI model may be responsible for this.
Additionally, U.S. users are starting to spend less time in the ChatGPT app. Usage data corroborates that these users are abdicating to open the app each day less often. This trend may threaten the platform’s average user engagement metrics across the platform. Daily usage is dropping. This is an alarming pattern and it speaks to a larger issue surrounding user retention and engagement—the lifeblood of any digital application.
Although the release of GPT-5 in August would have only been a minor factor, it could still be relevant to users’ perceptions and experiences with ChatGPT. According to anecdotal reports, users feel the new model is less personable than past versions. This misunderstanding could be preventing them from taking full advantage of the app on a regular basis. These recent changes have led to ChatGPT’s global daily active user growth starting to stagnate. That’s telling because it means even our most committed users are likely to be making a new calculation about their use of the platform.
User churn in the U.S. has largely levelled off over this period. ChatGPT is doing a pretty good job of holding on to its core everyday users. Even the percentage of users that download the app and immediately stop using it has reduced. It’s an encouraging indication that the individuals who remain on the developing service are locating more worth out of it. This retention of core users could provide a foundation for future growth, as it demonstrates that a segment of the audience is still engaged with the app’s offerings.
While these are all good indicators for user retention, the picture for ChatGPT overall is not that rosy. It’s ugly out there. The competitive set has evolved, with hundreds of similar alternatives flooding the space and stealing the focus of potential users. ChatGPT has to change the approach. Doing so will create better experiences for users and bring back users that have gone dormant.
