Tinder, the popular dating app owned by Match Group, is turning to artificial intelligence (AI) to revamp its user experience and combat a declining active user base. In its Q4 earnings release, the company announced plans to roll out new AI-powered features for discovery and matching, aiming to offer users an alternative to the "swipe" gesture that has defined the app since its inception.

The AI-curated recommendations are designed to deliver more "personalized and engaging matches," according to Match Group CFO Gary Swidler. During the Q4 earnings call, Swidler emphasized that the AI-driven matching feature will complement, rather than replace, the traditional swiping mechanism. The goal is to provide users with "something other than swiping" to meet new people, with the ultimate objective of improving the quality of matches and driving user growth.

This move comes at a challenging time for Tinder and the dating app industry as a whole. Young singles have grown disillusioned with online dating, citing a lack of spontaneity and fun, as well as concerns over safety and privacy. As a result, users have been leaving Tinder and other dating apps behind, leading to a decline in active users. In October, Tinder's monthly active users (MAUs) were down 10% year over year, with only a slight improvement to a 9% decline over the next two months.

The app's MAUs continued to decline, with an 8% drop in January. Despite this, executives attempted to spin the news as a positive signal. Tinder's direct revenue also missed the company's internal guidance, coming in at $476 million, below the forecast range of $480-$485 million.

In an effort to course-correct, Match Group has appointed Zillow Group co-founder Spencer Rascoff as its new CEO. Rascoff expressed optimism about the potential of AI-powered online dating, drawing parallels with the shift from desktop to mobile around 10 years ago. He cited examples of consumer mobile apps like TikTok, Instagram, and Snapchat, which have benefited from AI features in terms of engagement and retention.

While Match executives are bullish on the potential of AI, it's clear that the dating app market is headed for change. Beyond Tinder's declines, the company missed estimates in Q4 with earnings of 82 cents per share, below analyst expectations of 84 cents. The company's Q1 2025 guidance also points to a 3 to 5% year-over-year decline in revenue, thanks to Tinder's negative MAU trends.

As the dating app industry continues to evolve, it remains to be seen whether Tinder's AI-powered features will be enough to revitalize its user base and drive growth. One thing is certain, however: the company's bet on AI is a significant one, and its success or failure will have far-reaching implications for the industry as a whole.