Jaden Schaefer

In any case, part of the churn that we're seeing right now, I think is going to be obviously just how fast AI is going.

All of the experimentation happening in the industry.

I think you're going to see metrics like AI apps have 20% higher refund rates than non-AI apps.

The median refund of 4.2% is, you know, you can compare that to 5.3%.

At the high end, I think the difference is even more pronounced with AI apps seeing refund rates as high as 15.6% compared to 12.5% for non-AI apps.

And according to what Revenue Cat is saying, basically, volatility is coming from some big issues about value, product experience, long-term utility.

And I really just think a lot of this comes down to over-promising and under-delivering what the AI is capable of doing.

And I see this in so many areas because I'm in marketing and I'm in AI.

So clearly, this is a problem I think we see in the industry.

I think we should probably normalize being able to underhype your app, but it being super useful and people just use it without having to oversell all of its capabilities.

I think AI apps right now also monetize downloads significantly more effective overall.

Median download monetization is at about 2.4% for AI apps versus 2% for non-AI apps.

So that is interesting.

And I think AI apps also generate higher realized lifetime value.

So here we are, you know, talking about, oh, look, regular apps versus AI apps.

AI apps aren't able to keep people subscribed as long, but they're getting a lot more money out of people, right?

On a monthly basis, AI apps produce a median real lifetime value of $18 per user compared to $13 for non-AI apps.

It's actually closer to $19 and like $13.50 for non-AI apps.

So, I mean, that's a pretty big step up.

People are paying more for AI apps.