Dating Apps Must Evolve as Gen Z Redefines Romance: Bloomberg Intelligence

Dating app companies’ sizable investments in artificial intelligence could be in vain as Gen Z users remain wary of the new AI features, a new Bloomberg Intelligence survey found.

Gen Z, which broadly dates less than older cohorts, reported higher discomfort than millennials with using AI to draft profile prompts and responses to messages, or to modify profile pictures, according to a survey of nearly 1,000 US respondents. The questionnaire was conducted by Attest on behalf of BI between May 15 and 29.

For many users, this new class of features may also be superfluous. The research found that nearly 50% of respondents didn’t have problems creating a profile on their own, without the assistance of AI, and that most don’t struggle having conversations with potential suitors.

Bloomberg's Nicole D'Souza reports.

The report did not mention any companies by name, but the AI features it describes are available today — including profile photo selection on Tinder and Bumble, and prompt suggestions on Hinge. The findings suggest these tools may not be addressing user needs, which could, in turn, threaten margins if these features aren't widely used, said BI technology analyst Nicole D’Souza, who wrote the report.

The findings underscore the challenges that companies such as Match Group Inc. and Bumble Inc. face as they invest heavily in AI to court the key demographic of younger users, who have different social mores than other generations. While many of these apps were created and designed around millennials’ habits, Gen Z is more likely to abstain from dating, according to D’Souza. And those who do participate are choosing long-term relationships over casual ones. Pandemic-era isolation may have also led them to prefer meeting people in person, she added.

The shift has resulted in eight straight quarters of subscriber declines at Match, which owns brands like Tinder, Hinge, Match.com and OkCupid. Rival Bumble has similarly wrestled with revenue and paid-user slumps in recent quarters. Match Chief Executive Officer Spencer Rascoff, who took the top job in February, has said his company failed to “recognize and respond to changes in the younger demographic” as millennials aged up.

Executives at Match have pointed to the use of AI as a way of boosting engagement among Gen Z, which now makes up about half of the monthly active users at Tinder, Match’s largest brand. But BI’s D’Souza suggests “AI can’t rescue dating apps” if Gen Z is dating less and more hesitant to pay for subscriptions. The discomfort with the use of AI tools may also signal “a potential disconnect between product strategy and user sentiment,” she wrote.

Apps that cater to Gen Z’s preferences are faring better with young users. Hinge, a service known for emphasizing long-term relationships, has been able to sustain double-digit subscriber growth. Tinder, meanwhile, has struggled to shake its reputation as a “hookup app,” and executives have recognized the need to revamp it and prioritize user needs over short-term profit. Some of its new products are meant to help reinvent the brand, such as a double-dating option that Tinder is positioning as a low-pressure way for people to meet dates with friends.

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