Generative AI apps struggle with retention and differentiation

  • Growth alone is not enough to build durable software companies. Critically, growth must be profitable
  • In the absence of strong technical differentiation, B2B and B2C apps drive long-term customer value through network effects, holding onto data, or building increasingly complex workflows.
  • It’s not yet obvious that selling end-user apps is the only, or even the best, path to building a sustainable generative AI business.

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