Durability is an existential question for AI apps. Yet there’s been almost zero objective data on what's happening.

To change that, I teamed up with ChartMogul where I’m an Analyst-in-Residence & analyzed data on 3,500 software companies.

What we found:

1. In aggregate AI-native companies had even worse retention than even consumer SaaS. It doesn't look like the recurring revenue of B2B.

2. On the optimistic side, AI retention has gotten much better since the beginning of the year.

3. The best protection against churn is shifting from consumers and self-serve purchases (<$50 per month deals) to larger B2B purchases.

The downside of being easy to buy is being easy to cancel. (Another factor is that AI products often push people to buy while they're still in "trial" mode w/ tactics like 7-day trials & daily usage limits.)

—

See the full AI churn report at the link below.