AI Update: Character.ai's Mobile App & Where Companies Should Start With GenAI

Character.ai's Mobile App Gains Traction, Challenging ChatGPT's Dominance

AI app maker Character.ai is making waves in the mobile app space, attracting a younger demographic and giving ChatGPT a run for its money.

In the battle for AI app supremacy, Character.ai, the AI app maker that allows users to design their own AI characters, is rapidly catching up to its competitor, ChatGPT. With its recent surge in mobile app usage, Character.ai is proving that it has what it takes to challenge the dominance of ChatGPT. Let's dive into the numbers and see how Character.ai is making its mark.

The Rise of Character.ai's Mobile App:
According to a recent analysis by market intelligence firm Similarweb, Character.ai's iOS and Android apps now boast an impressive 4.2 million monthly active users in the US, compared to ChatGPT's nearly 6 million monthly active users. This growth is particularly significant considering that Character.ai only launched its mobile app in May 2023. The fact that the app has been able to retain users and steadily increase its usage in the months since its debut is a testament to its appeal.

Character.ai's Younger Demographic:
One key factor contributing to Character.ai's success is its ability to attract a younger demographic. The app draws in nearly 60% of its audience from the 18- to 24-year-old age bracket, a figure that has remained steady even as website traffic to ChatGPT dropped. In comparison, other AI providers struggle to capture the attention of this age group, with significantly lower adoption rates. This suggests that Character.ai's focus on entertainment and user customization resonates strongly with younger users.

ChatGPT's Web Dominance:
While Character.ai is gaining ground in the mobile app space, ChatGPT still maintains a strong presence on the web. This can be attributed to the preference of Character.ai's users for building and interacting with AI chatbots on their personal mobile devices rather than through a website. Globally, ChatGPT still boasts 22.5 million monthly active users on Android, compared to Character.ai's 5.27 million.

The Road Ahead for Character.ai:
With $150 million in Series A funding and a valuation of $1 billion, Character.ai has the resources and potential to further expand its user base. Investors were drawn to the startup's founders, Noam Shazeer and Daniel De Freitas, who have been trailblazers in the AI field for nearly two decades. Their expertise and the end-to-end combination of model and application in Character.ai's platform position the company for continuous improvement and growth.

Character.ai's rise in mobile app usage is a clear indication that it is a force to be reckoned with in the AI app space. Its ability to attract a younger demographic and retain users sets it apart from its competitors. While ChatGPT still dominates the web, Character.ai's success on mobile devices cannot be ignored. As the battle for AI supremacy continues, it remains to be seen if Character.ai can maintain its momentum and become a lasting player in the AI landscape.

GenAI: Where Should Your Company Start?

Understanding the Impact of Generative AI on Work

In the ever-evolving landscape of artificial intelligence (AI), one area that is gaining significant attention is generative AI (GenAI). Companies are grappling with where to begin and how to harness the potential of this technology. While there are overarching concerns about accuracy, privacy, and bias, executives and board members need practical insights to understand what GenAI means for their businesses today.

The WINS Work Framework:
Based on case studies and insights from a global community of over 3,000 GenAI practitioners, a new category of work has emerged: WINS Work. This framework identifies the areas where tasks, functions, and even entire industries depend on the manipulation and interpretation of Words, Images, Numbers, and Sounds (WINS). By evaluating the vulnerability of their business to GenAI, leaders can better plan their response.

Understanding the Urgency:
To determine the urgency of adopting GenAI, companies can ask two simple questions: How much of our cost base is made up of WINS work? And how digitized are the WINS inputs today? By plotting their company on a 2x2 matrix, leaders can assess where they fall and categorize their competitive position.

In the Crucible:
Industries with a high percentage of cost in WINS work and high digitization are "In the Crucible" and must embrace GenAI immediately. Sectors such as software, entertainment, professional services, and financial services fall into this category. GenAI tools offer new creative solutions for tasks like software development, scriptwriting, and film production, transforming industries and creating cost pressures.

Holding a Lever:
Companies that can gain an advantage in cost, time, and quality, even with a lower percentage of WINS work, are "Holding a Lever." Moderna, for example, requires all employees to be trained in GenAI tools, recognizing its potential to drive productivity. By leveraging GenAI in areas like bid preparation and SG&A functions, companies can achieve significant benefits.

Next in Line:
The "Next in Line" category presents an opportunity to digitize tasks that are not currently digitized. Home décor companies, for instance, are investing in their "digital front door" to enhance customer engagement and customization. GenAI enables new levels of personalization, leading to a better customer experience and competitive advantage.

In the Balcony:
Industries with low digitization and limited WINS work fall into the "In the Balcony" category. While the urgency may be lower for these companies, GenAI tools will eventually make their business easier and faster, much like Excel and Word replaced calculators and typewriters.

Legal and Risk Considerations:
Human review is vital when using GenAI tools, especially for high-risk decisions. While GenAI models can sometimes provide incorrect answers, they can still enhance high-risk tasks. Clear policies should be in place for data usage and privacy, particularly when using open-access models like ChatGPT.

Getting Started:
To kickstart a GenAI initiative, companies should fully educate themselves on available tools and their potential impact. A cross-functional team should be appointed to experiment and report on progress. A strategic review of cost drivers and digitization levels can help determine the urgency of investing in GenAI. Test-and-learn strategies should be implemented, depending on the company's position in the WINS work spectrum.

As the GenAI revolution unfolds, business leaders must adopt a bifocal lens. While considering long-term implications, they must also focus on immediate opportunities and threats. Industries heavily reliant on WINS work need to act swiftly to fend off competition and overcome disruptive forces. By embracing GenAI, companies can transform their operations, enhance productivity, and stay ahead of the curve in an increasingly AI-driven world.

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