Grammarly has an existential crisis. It can be replaced it with free versions of the top models and they are much better (and I can control the UI anyway I want). In fact, many of these “web 2.0” business models are a few more updates away from getting replaced.
This is such a programmers take. Bottled water is in a crisis, it can be easily replaced with tap water and a reusable container! Yet it’s a $47 billion dollar market in the US.
Grammarly’s value is not in having a replaceable product, it’s in the network, distribution, customer acquisition channels and integrations with tools. Like bottled water, it’s about being in the customers face at the right place and the right time.
You’re on the money and that’s exactly why I think Grammarly will struggle. OpenAI/Gemini/Claude will get embedded further. Gemini is already on gmail. Getting OpenAI and Claude incorporated is trivial. Guess what? Once Apple figures out what they’re doing with AI (which I hope is to buy Anthropic) they will take whatever is out there and incorporate them into iOS/MacOS just as they’ve done for so many third-party app ideas in the past.
I'm paying for most AI models top tiers and Grammarly. Grammarly is a phenomenal tool. It's not that LLMs can't do it. Well, they can't, but the more important thing is Grammarly's UI.
I can see room for improvement about the UI, but I like that it works everywhere and I use it to, obviously fix grammar and mistakes, to add/change our company's specific vernacular (finance), and to change common LLM sentence forms so that the readers don't notice that content was made by AI. Ya know, all these em dashes, "testaments to", "this isn't just X, it's Y", etc.
My favorite function of the UI is that, on any website, pressing TAB just fixes/improves what I just wrote before.
Grammarly can cut down their costs if they use those models themselves. The current LLM advancements aren't disruptive but incremental. What's the hurdle you see they can't rely on their existing distribution and expand from there?
That’s true but I can replace Grammarly in a few hours with Claude. 99% of the functionality. Then, I can spend a couple more days to add stuff that they can’t add due to copyright.