ChatGPT Faces First-Ever Monthly Traffic Decline as User Preferences Evolve

Exploring the shifting tides of user preferences for ChatGPTs website traffic decline

ChatGPT, the immensely popular AI chatbot introduced in November, recently encountered a noteworthy setback as its website experienced a decline in monthly traffic and unique visitors for the first time in June, according to Similarweb, a renowned analytics firm. The global desktop and mobile traffic to the ChatGPT website witnessed a decline of 9.7 percent compared to May, accompanied by a drop of 5.7 percent in the number of unique visitors. Furthermore, the data indicates that visitors spent 8.5 percent less time on the website.

This decline in traffic has prompted discussions among industry experts about the evolving landscape of user preferences and the impact of generative AI on the market. Similarweb's Senior Insights Manager, David Carr, suggests that the diminishing novelty of the chatbot might be a contributing factor to the decline. However, Rishi Jaluria, an analyst at RBC Capital Markets, interprets the data as a sign of the growing demand for generative AI that provides real-time information.

Since its introduction, ChatGPT has ignited a frenzy of generative AI usage, enabling users to accomplish various daily tasks, including writing and coding. Its impressive success was evident as it swiftly amassed 100 million monthly active users within just two months of its launch in January.

ChatGPT's remarkable growth has propelled it to one of the top 20 websites globally, currently enjoying over 1.5 billion monthly visits. This achievement is further highlighted by surpassing the popularity of Microsoft's search engine, Bing, which incorporates OpenAI's technology.

However, as the market for generative AI becomes increasingly competitive, several new players have emerged, vying for a share of the growing demand. Google's Bard chatbot and the free chatbot offered by Microsoft's search engine Bing, powered by OpenAI, are among the notable contenders challenging ChatGPT's dominance.

Sarah Hindlian-Bowler, head of Technology Research Americas at Macquarie, acknowledges the challenges of rapid user growth, citing potential accuracy issues resulting from the heavy infrastructure and the need to adapt the model to changing circumstances and regulatory considerations.

In May, OpenAI expanded ChatGPT's reach by launching the ChatGPT app on the iOS platform, potentially diverting traffic from the website. The app's popularity has been attributed, in part, to the summer break for schools, which reduced the number of students seeking homework assistance and led to a shift in usage patterns.

The impact of ChatGPT's decline in website traffic is also reflected in the success of the ChatGPT app, which has been downloaded over 17 million times globally as of July 4. The app experienced its highest number of downloads on May 31 and has consistently maintained popularity in the United States, averaging 530,000 weekly downloads during its initial six weeks of availability. As ChatGPT navigates the evolving landscape of user preferences and intensifying competition, it remains a prominent force in generative AI. The decline in website traffic serves as a reminder of the dynamic nature of the AI market, prompting OpenAI and other industry players to adapt and innovate to cater to the evolving needs of users in this transformative era of AI-driven interactions.