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Productivity gains meet a retention problem

The 2023 report found evidence that generative AI could make particular kinds of work faster. Turning that usefulness into a durable business was less settled. Consumer products still struggled to retain users, while generative AI attracted enough investment to support the wider AI funding market.

Questions in this section

What productivity gains did the 2023 report find?Were generative AI apps retaining users?How did generative AI affect startup funding?

Writing assistance produces measurable gains

In a study of mid-level professional writing, workers using ChatGPT completed tasks in 40% less time and produced output rated 18% better than the control group. The finding made a concrete case for assistance on those tasks. It did not measure the effect on an entire job, company, or economy.

Writing assistance produces measurable gains - 2023 report, slide 91
Writing assistance produces measurable gains. 2023 report, slide 91 (PDF page 91)

Initial excitement does not guarantee retention

The report compared generative AI apps with established products such as YouTube, Instagram, TikTok, and WhatsApp. The AI apps had lower median retention and daily active use in the cited comparison. A compelling first experience had not yet demonstrated the same recurring role in users’ lives.

Initial excitement does not guarantee retention - 2023 report, slide 94
Initial excitement does not guarantee retention. 2023 report, slide 94 (PDF page 94)

Generative AI props up the funding market

AI startup investment in the first half of 2023 was close to the prior-year level, but the report estimated that excluding generative AI would have produced a 40% decline. The aggregate therefore concealed a sharp split between the new category and the rest of the market. Funding enthusiasm and sustainable customer demand were different questions.

Generative AI props up the funding market - 2023 report, slide 109
Generative AI props up the funding market. 2023 report, slide 109 (PDF page 109)

Evidence you can use

AI business in the 2023 report

Historical snapshot: October 2023. Dates and populations are specified per row.

AI business in the 2023 report
MeasureReported valueDefinition and source
Writing task completion time40% less timeChatGPT-assisted participants versus the control group in the professional-writing study.2023 report, slide 91 (PDF page 91)
Writing output quality18% betterRated output quality in the same study; not a company-wide productivity measure.2023 report, slide 91 (PDF page 91)
AI investment excluding generative AI40% declineReport’s counterfactual comparison for H1 2023 against H1 2022; not the actual overall AI funding change.2023 report, slide 109 (PDF page 109)

The writing results concern specific assigned tasks and rated outputs. The funding figure removes generative AI from an aggregate comparison. Neither is a measured economy-wide productivity or investment effect.

Frequently asked questions

Sources and dates

Historical snapshot published October 12, 2023. This web edition was prepared on October 10, 2026 from the online deck and original launch posts. Findings and forecasts retain their original time frame.

  1. 2023 report, slide 91 (PDF page 91)Original 2023 report. Printed slide numbers match PDF page numbers in this edition.
  2. 2023 report, slide 94 (PDF page 94)Original 2023 report. Printed slide numbers match PDF page numbers in this edition.
  3. 2023 report, slide 109 (PDF page 109)Original 2023 report. Printed slide numbers match PDF page numbers in this edition.
  4. State of AI Report 2023: online slides
  5. Nathan Benaich: The State of AI Report 2023Air Street Press, October 12, 2023.
  6. Welcome to State of AI Report 2023Original website launch post, October 12, 2023.

Cite this page

Benaich, Nathan. “Productivity gains meet a retention problem.” State of AI Report 2023. Historical report snapshot; web edition prepared 2026-10-10.