The AI chatbot market is already getting saturated

The market for AI chatbots is rapidly filling up, with no indication that its growth will slow down soon. The rise of ChatGPT, followed by the advent of Microsoft’s Copilot and Google’s Gemini, has made it difficult for users to choose the language model that best meets their needs. Furthermore, with programs like LM Studio enabling users to launch various models on their own powerful computers, the question of “Which AI chatbot is the right one for me?” has become even more complex to answer.

There’s no denying that the market is getting saturated, and with Copilot burnout being an early warning sign of that, soon users will feel overwhelmed by the options there are when it comes to these models. It’s very likely that one will eventually reign supreme in the months to come, but for now, it’s hard to pick as every company vies for the top.


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AI is still a booming industry

Chatbots specifically are becoming saturated

ChatGPT on an iPhone with laptop in the background

To clarify first and foremost, chatbots are what’s getting saturated, not the entire AI industry. There are countless new AI tools that, while many are admittedly not useful or claim to do things they can’t, others manage to impress. Chatbots however all serve the same fundamental usage: conversation and information sharing. There are language models geared towards certain usages, but otherwise, they’re all fundamentally the same on the outside.

The best advancements and changes come from upgrades to existing models, such as Gemini’s 1.5 update, or GPT-4 Turbo over GPT-4. There isn’t a lot of fanfare when a new Llama 2 model is released, or when Mistral updates its Mixtral 8x7B model that manages to outperform models with a significantly smaller amount of RAM and computational power. There isn’t the same level of appetite because there’s simply so much news coming out of the LLM sphere that it’s hard for anyone but the most enthusastic to keep up.

I love the advancements in AI, but if the most enthusiastic struggle to keep up with everything, then I can’t imagine how the general populous feels. I wouldn’t say they necessarily feel overwhelmed, I’d say it’s a feeling of indifference. The magic of ChatGPT Is gone, and for many, has now just become a simple part of life. There’s nothing “new” or “innovative” that comes to mind, because many of those people simply use ChatGPT, Copilot, or Gemini, and they don’t need to care about anything else. Those are three primary options, and in all walks of life people find it easiest to choose between a smaller subset of options.


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We risk missing true advancements

It’s hard to keep up

Asking Phind how to create a link with query params using React router

Because of the volume of new releases and advancements, it’s genuinely hard to keep up at times. Phind-70B is one such model that recently released, which claims to have better code support than GPT-4 Turbo while generating responses quicker and cheaper. It’s already available to try out for free in its 34B form, and its 70B model requires a Phind Pro subscription.

That’s the other problem, too: all the subscriptions. To get the best parts of any of these tools, you’ll need to pay up to get them. To use ChatGPT Plus you need to part with $20 a month, and it’s the same for the subscription tiers of both Microsoft Copilot and Google’s Gemini. Not only are you asking users to keep up with all of the advancements in the industry, you’re asking them to choose where to spend their money. That’s a difficult question to answer, and most people will almost certainly go with one of the known quantities rather than a smaller, unknown name like Phind.

Because of this, people are sometimes going to have a hard time finding the tools they really need to complete a job. There’s so much going on that it’s hard to look past the big three, and with more releasing every single day, that problem is only going to get more difficult to overcome.

What can we do about it?

Not much, to be honest

Gemini 1.5 logo that says

Source: Google

Like any new technology, every industry player is racing to get its own flavor of the product out the door. It’ll slow down eventually, but for now, we’re going to continuously be inundated with countless options until that time comes. We’ll continue to see updates to all of the major options too, but smaller updates to AI like Gemini, Copilot, and ChatGPT will all take the spotlight.

Eventually, like any technology, things will slow down and will come back to normal. We’ll likely be left with a couple of key players, and I suspect they’ll be the ones that we know currently. There will be a couple of specialized options that go far too, but for the vast majority of people they’ll be happy with the known quantities.

Those products are the ones that were here at the start from the companies that they know already. The company that made a name for itself by blowing LLMs up in the first place, the company known for having the best search engine in the world, and the company known for Windows, the largest computing platform on the planet. Those are the ones that will rule the roost, and it’ll be hard to shake that up.


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