Reddit CEO says chatbots are not a traffic driver

During a recent earnings call, Reddit CEO Steve Huffman addressed the impact of AI chatbots on the platform's traffic, asserting that they do not significantly drive user engagement. Despite the advancements made by companies like OpenAI and Google in AI-enhanced search, Huffman emphasized that traditional channels, specifically Google search and direct visits, remain the primary sources of traffic for Reddit. Huffman stated, "[Chatbots are] not a traffic driver today," while expressing optimism about the ongoing collaborations with AI companies. He acknowledged the mutual benefits and learning experiences that have emerged from these partnerships, highlighting the importance of Reddit's data to enhance their respective products. When questioned about the traffic distribution, Huffman confirmed that approximately 50% of Reddit's traffic stems from Google, with the other half coming from direct visits. This comes at a time when Reddit has taken steps to safeguard its data, instituting a policy change in May 2024 that requires licenses for any commercial use of its information. In contrast, Reddit has entered into agreements with OpenAI to permit the use of its data for model training, and it maintains a partnership with Google. However, it is also engaged in legal disputes with AI firms such as Anthropic and Perplexity. Financially, Reddit reported a successful quarter, achieving $585 million in revenue—a remarkable 68% increase year-over-year. The platform boasts 116 million daily unique users and 444 million weekly unique users, reflecting a 20% growth compared to last year. Furthermore, international daily user growth stands at 31%, with over 190 million Americans visiting the site each week. Huffman reiterated Reddit's commitment to enhancing the search experience, noting that AI-powered answers currently handle 20% of search volumes. In Q3 alone, 75 million users conducted searches on Reddit. Looking ahead, the company plans to unify AI capabilities with its core search functions in the coming quarters, alongside experimenting with a streamlined onboarding process to boost early user engagement. Huffman concluded, "We want them to see in their first session that Reddit is amazing and has content for them," emphasizing the goal of connecting users to relevant content swiftly.