The Rise of Zeta South Koreas New Favorite AI

In an unexpected shift in the AI landscape, a homegrown hero has risen to the top in South Korea. Zeta, a highly interactive and customizable AI chatbot, has officially dethroned the global giant ChatGPT as the nation's most-used application in its category.

A New Leader in the AI Chatbot Arena

The numbers speak for themselves. According to new data from market analytics firm Wiseapp Retail, Zeta users clocked an incredible 73.62 million hours of engagement in October. This performance significantly outpaced OpenAI’s ChatGPT, which secured the second spot with 48.28 million hours. Other AI apps like Krak, Grok, and Perplexity were left far behind, highlighting Zeta's dominant position in the local market.

What is Zeta The Power of Personalization

So, what’s the secret to Zeta’s success? Developed by the innovative Seoul-based startup Scatter Lab, Zeta isn't just another conversational AI. It’s a platform for creation and connection. Users can build their own unique AI characters from the ground up, assigning them names, distinct personalities, and specific interests. This transforms a simple chat into an immersive, novel-like roleplaying experience.

The chatbot is powered by Scatter Lab's own small language model, allowing for nuanced and detailed interactions. Recent upgrades have pushed the boundaries of interactivity even further, introducing a snapshot function that generates contextual images with a single tap and a voice feature that brings the AI characters to life with synthesized speech.

Explosive Growth and a Path to Profitability

Zeta’s journey has been nothing short of meteoric. After launching its open beta in April 2023 with a hefty 15 billion won ($10.2 million) investment from SK Telecom, the app quickly found its audience. Within a year, it had amassed 2 million users globally and was handling over 2.3 billion conversational exchanges every month.

This rapid user adoption has translated directly into financial success. Scatter Lab recently announced that Zeta became profitable in the second quarter of this year, generating an impressive 5.2 billion won in revenue and 900 million won in operating profit.

Capturing the Hearts of Gen Z

The driving force behind Zeta's explosive growth is clear: the younger generation. Users in their teens and 20s make up a staggering 90 percent of the app's global user base. By late May, more than 3.9 million users had signed up, collectively creating over 190,000 unique AI companions on the platform. Zeta’s focus on creativity, roleplay, and personalized connection has struck a powerful chord with Gen Z.

Navigating Controversy and Ensuring Safety

The path to success hasn't been without its challenges. The app faced criticism over instances where user interactions led to the generation of inappropriate or sexually suggestive content. Scatter Lab addressed these concerns head-on by implementing a mandatory age verification system in August. They also launched a separate, adults-only “unlimited mode” to provide a safer experience for all users.

The Future is Global for Zeta

With a firm grip on its home market, Scatter Lab is now setting its sights on the world stage. Following a recent successful entry into the Japanese market, the company is actively planning its expansion into English-speaking regions. The ultimate goal is to transform Zeta from a local phenomenon into a global platform with over 100 million users in the coming years.