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Report: Cheap, generic AI agents show sharply weaker retention than vertical tools

An Entrepreneur opinion piece cites a 2025 retention study finding that AI-native software companies priced under $50 a month retain far fewer customers than established B2B SaaS firms, while those priced above $250 a month—offering more specialized functionality—retain customers at rates comparable to traditional software. The piece points to Jasper, which raised $125 million at a $1.5 billion valuation as an AI copywriting tool before facing cutbacks, as an example of a horizontal, easily replicated AI product losing pricing power.