Microsoft's Copilot App: How Free Access to GPT-4 Affects ChatGPT Installs and Revenue

Microsoft Copilot vs. ChatGPT: Analyzing User Engagement and Downloads

Microsoft Copilot, the company’s newly launched AI chatbot powered by OpenAI technologies, has not yet begun to draw users away from OpenAI's ChatGPT, according to a recent analysis of app store data. This innovative tool combines an AI chatbot with an Image Creator feature that utilizes DALL-E 3 technology and offers free access to OpenAI’s advanced GPT-4 model—an offering not available in ChatGPT, which operates on GPT-3.5 and carries a subscription fee. Surprisingly, despite being a free alternative, Copilot has not significantly affected ChatGPT’s downloads or revenue, which might be attributed to minimal promotional efforts.

The app store analysis conducted by Appfigures suggests that Copilot's launch has largely gone unnoticed by prospective users due to various factors. The app was first made available on Google Play on December 20; however, it did not achieve any rankings initially, likely due to the absence of promotional marketing within the Play Store. It subsequently launched on the App Store on December 28, yet it has not utilized Apple’s Search Ads to attract attention from iOS users. By employing Search Ads, Copilot could appear as a top result for common queries such as “AI chatbot” or “ChatGPT.” However, Microsoft has not tapped into this advertising potential.

As of January 5, 2024, Copilot has reached 2.1 million downloads across both iOS and Android platforms. Daily downloads peaked at 413,000 but have since declined, with only 194,000 total installs on January 5. The U.S. accounts for 24% of Copilot's download share, followed by Germany, India, Italy, and the U.K. Interestingly, Copilot's installations are relatively balanced between iOS and Android, with 59% of downloads coming from Google Play and 41% from the App Store.

Appfigures also noted that ChatGPT's downloads have been slowing since December, although this trend began prior to Copilot's launch. While Copilot accrued 2.1 million installs, ChatGPT saw an additional 4.2 million downloads. The firm informed that there’s no evidence to suggest Copilot has impacted ChatGPT’s downloads or revenue, which continues to trend upward. As of ChatGPT’s first anniversary in November, its mobile applications have generated nearly $30 million in revenue. Although other applications have monetized more effectively on mobile, ChatGPT’s subscription services are also available on the web, where many users prefer to engage with the AI chatbot. Thus, mobile revenue does not paint a complete picture.

Upon its release, ChatGPT was a remarkable success, amassing 500,000 downloads within its first six days. Although this record was later surpassed by Instagram Threads, ChatGPT's launch still ranks among the highest-performing app releases in recent years, with only the February 2022 arrival of Truth Social previously exceeding it. In contrast, Copilot has not garnered the same level of excitement—this could be due to ChatGPT's established user base, which may not feel the need to switch, or the holiday release combined with poor promotional activity causing many potential users to overlook its debut. Additionally, some users might find the Bing-centric integration unappealing, although it remains unclear how this has affected download decisions.

Ultimately, Copilot has yet to dethrone ChatGPT from its position as the leading AI chatbot. Meanwhile, Microsoft continues to explore other applications for its AI technology, including the introduction of a Copilot button on PCs.

Keywords: Microsoft Copilot, ChatGPT, AI chatbot, DALL-E 3, Appfigures, app store analysis, user downloads, app promotion