Dating apps are replacing endless swiping with artificial intelligence matchmakers as the industry struggles with declining paid subscribers and plummeting stock prices, with major companies losing billions in market value since 2021.
Over the last year, Bumble lost nine per cent of its paid subscribers while Match Group lost five per cent, even as both grew their total number of users, reports The New York Times. Match Group’s shares have plunged 80 per cent from their 2021 high, whilst Bumble’s stock is down 90 per cent from its initial public offering that year. The two companies account for the majority of the dating app market.
The major dating apps — Hinge, Tinder, Bumble and Grindr — are now ushering in a new era of online dating where people pay for a few premium AI matches a week instead of subscribing to an endless stream of profiles. The shift comes as the apps have run into what the industry calls “the cycle of despair,” where people download a dating app, become burned out from swiping or getting ghosted, and then delete it only to re-download it months later.
“A.I. is already playing a big role in our business, but I think it has the potential to be a step change — the next technological shift,” said Hesam Hosseini, the chief operating officer of Match Group, which owns Hinge and Tinder.
Welcome to your AI “wingman”
Tinder is testing an AI matching service called Chemistry, which it plans to expand this month. Users would be able to give the app access to their camera roll, which the AI would scan to learn more about them. Grindr has unveiled six AI features, including an AI “wingman” that gives advice about conversations. Hinge reprogrammed its matching algorithm with generative AI this year, raising the number of matches by 15 per cent.
Meanwhile, Facebook Dating has emerged as a surprise competitor with more than 21 million daily users, quietly making it one of the most popular online dating services compared to Hinge’s 15 million users, The New York Times also reports. The service is free and has grown while other dating apps have struggled, with users under the age of 30 having conversations that have risen seven per cent year over year.
Facebook introduced an AI dating assistant in September that allows users to describe their ideal match, connecting them with real people who fit that description. The company also launched an AI matchmaker called Meet Cute, which serves up one match per week for users to reduce swiping fatigue.
“Underlying it all is that there are real people on Facebook,” said Tom Alison, the head of Facebook. “You can see who they are, you can see how you’re connected to them, and if you have mutual friends, we make it easy to see where you have mutual interests.”
The changes have come under new leadership. Last winter, Match Group hired Spencer Rascoff, a co-founder of Zillow, as its chief executive. Whitney Wolfe Herd, who founded Bumble in 2014 and left the company in 2024, returned as chief executive in March.
As dating app companies grapple with the changes, Francisco Partners and Permira, two private equity firms, have reached out to dating apps, including Bumble and Grindr, about buying them. They indicated they wanted to build a portfolio of around six apps to rival Match Group.
New start-ups are also entering the market with AI-first approaches. Known, founded by two Stanford dropouts, charges users $25 per date after an AI chatbot conducts a phone interview about their preferences. Bumble said it plans to release an AI matchmaking app by the end of the year, adding that it may charge a fee per match.
