Grammarly’s AI Ambitions Hit a Wall

Grammarly started as a simple browser extension that fixed your grammar. Now it’s trying to be an AI powerhouse. But the company’s pivot is running into a problem: its new AI features are getting mistaken for knockoffs of competitors’ work.

The writing assistant, which went public in 2021, launched a suite of generative AI tools last year. Users began noticing that Grammarly’s outputs looked suspiciously similar to features from ChatGPT, Claude, and other AI services. Some flagged the similarities online. The company didn’t hide what it was doing—it licensed models and built on existing tech—but the perception stuck that Grammarly was just repackaging other people’s AI instead of building its own.

The backlash exposed a bigger problem. Grammarly has massive reach—millions of users rely on its extension daily. But that distribution advantage doesn’t automatically translate to AI dominance. Competitors have better foundational models. Grammarly’s trying to compete in a crowded space where being “pretty good” at AI isn’t enough.

The company hasn’t given up. It’s investing heavily in its own AI research and product development. But it’s also facing pressure from investors who want to see clearer differentiation and profitability. Grammarly’s core business—the subscription model—still works. Its new AI features are the bet on what comes next.