In 2024, consumer spending on Generative AI apps skyrocketed to an astonishing $1.1 billion, marking a 200% year-over-year growth. This surge was part of a broader trend of global app spending, which reached $150 billion, up 13% from the previous year, according to Sensor Tower’s annual “State of Mobile” report.
Let’s explore what drove this growth and the key players in the space
Generative AI Drives Unprecedented Growth
Why are AI apps suddenly so popular? The report points to the rising demand for generative AI tools, including OpenAI’s ChatGPT and Gemini, alongside Bytedance’s Doubao. With OpenAI’s release of GPT-4o in the summer of 2024, consumer interest surged, but the appeal of these apps extended well beyond the initial buzz.
Consumers spent a staggering 7.7 billion hours using AI apps in 2024. These apps were downloaded 17 billion times throughout the year, demonstrating their growing ubiquity in daily life.
The Rise of ChatGPT
Among AI apps, ChatGPT was a standout performer, achieving 50 million monthly active users faster than Temu, and even YouTube Music. Its ability to provide conversational answers, help with creative writing, and assist with tasks made it a go-to app for users worldwide.
Also read: How to Use ChatGPT: A Comprehensive Guide
A Spot in the Top 10?
If this growth trend continues, AI apps could soon join the ranks of the top 10 categories for consumer spending, a major milestone that reflects their rapid adoption.
AI Apps vs. Other Categories
While AI apps are gaining ground, other app categories also experienced significant movement in 2024:
1. Streaming Services: Growth Amid Decline in Engagement
Streaming apps like Netflix and Disney+ saw a slight dip in user engagement. However, in-app revenue and downloads still managed to grow. This indicates that while consumers may be spending less time streaming, they’re willing to pay for premium content.
2. Crypto and Finance: Gaining Traction
The world of cryptocurrency made notable strides. Binance and Tonkeeper climbed into the top 10 finance apps by downloads. Meanwhile, finance apps as a whole grew by 8%, with 7.5 billion downloads.
E-commerce on the Rise
E-commerce apps Temu and Shein continued their global expansion, securing the No. 1 and No. 2 spots in the retail category. Their success in Europe, Latin America, and Asia reflects the increasing demand for affordable shopping options worldwide.
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Billion-Dollar Milestones
In addition to AI apps, five mobile titles crossed the $1 billion threshold for consumer spending in 2024:
- Last War
- Whiteout Survival
- Dungeon & Fighter
- Brawl Stars
- WeTV
A World Obsessed with Mobile Apps
The Sensor Tower report also sheds light on how mobile app usage continues to dominate consumer behavior. The 150 billion dollars spent globally shows that apps remain a central part of how we work, play, and connect.
Check out the full Sensor Tower report here.
Will AI Apps Dominate the Top 10 by Next Year?
If the sustained growth in downloads and engagement is any indication, the answer could be yes. With innovations like generative AI becoming more integrated into everyday tools, the appeal of these apps is only set to increase.
