The rapid growth of artificial intelligence applications has captured the attention and wallets of consumers. In 2024, spending on AI apps soared to $1.42 billion, representing a staggering 274% increase from the previous year. This surge is largely attributed to the immense popularity of OpenAI's ChatGPT, which has emerged as the frontrunner in this competitive landscape. Despite having numerous rivals, including those that leverage OpenAI’s technology, ChatGPT has consistently outperformed its competitors, earning more than all other top AI assistant apps combined. The success of these apps also benefits major platforms like Apple and Google, which collect approximately 30% of in-app purchase revenues. Consequently, mobile AI apps now represent a thriving $2 billion market.
User demographics reveal intriguing patterns in the adoption of AI apps. ChatGPT has been downloaded an impressive 353 million times, with a significant portion of users being young adults under the age of 25. This age group's enthusiasm for new technology might reflect their willingness to explore innovative tools, or perhaps they are simply seeking assistance with academic tasks. However, the second-largest user demographic comprises individuals aged 50 to 64, accounting for 20.2% of users. Gender disparities are even more pronounced, with men making up 84.5% of ChatGPT users across all age groups. Women, who hold prominent roles in the AI industry, tend to be more cautious about AI, possibly due to concerns about job displacement and privacy issues related to emerging technologies.
The dominance of ChatGPT in the AI app market faces potential challenges with the arrival of DeepSeek, a free and open-source alternative. While DeepSeek has temporarily overtaken OpenAI's app in the App Store rankings, sustaining this level of popularity may prove difficult. As the AI app market continues to evolve, it is essential to foster inclusivity and address the concerns of diverse user groups. By promoting responsible development and usage, the industry can ensure that AI technology benefits everyone, driving positive change and innovation forward.