The global appetite for generative artificial intelligence applications has propelled consumer spending on apps to an unprecedented $150 billion in 2024, marking a 13% increase from the previous year. According to Sensor Tower's latest "State of Mobile" report, the interest in AI-driven applications surged dramatically, leading to more than a 200% year-over-year rise in consumer expenditure within this category. Notable apps like ChatGPT, Gemini, and ByteDance’s Doubao contributed significantly to this trend. Analysts predict that if this momentum continues, AI apps could soon rank among the top 10 categories by consumer spending. Additionally, other sectors such as streaming, crypto, e-commerce, and fintech also experienced notable shifts.
Rising Popularity and Revenue of AI Applications
AI applications have witnessed remarkable growth, driven by consistent consumer interest and innovative model releases. The total time spent on these apps reached nearly 7.7 billion hours in 2024, with downloads of apps mentioning "AI" totaling 17 billion. This surge is not just limited to peak periods but reflects sustained demand throughout the year. For instance, ChatGPT achieved 50 million monthly active users faster than many established platforms like Temu, Disney+, or YouTube Music. This rapid adoption underscores the growing enthusiasm for AI features and applications.
The release of advanced AI models, such as OpenAI’s GPT-4, played a crucial role in driving revenue to record levels. Despite occasional peaks, consumer engagement remained robust throughout the year. The consistent demand indicates a long-term shift towards AI-powered solutions. As a result, AI apps are poised to become a dominant force in the app economy, potentially entering the top 10 categories by consumer spending within a year. The success of AI apps like ChatGPT, which rapidly gained massive user bases, highlights the transformative impact of AI technology on user behavior and preferences.
Shifts in Other Key App Categories
In addition to AI, several other app categories saw significant changes in 2024. Streaming apps, despite seeing a slight decline in engagement, still experienced growth in in-app revenue and downloads. Meanwhile, crypto apps like Binance and Tonkeeper emerged as leaders in finance, ranking sixth and ninth respectively by downloads. E-commerce platforms such as Temu and Shein dominated the retail subgenre, thanks to their expansions into Europe, Latin America, and Asia. Finance apps maintained double-digit year-over-year growth in usage time and approached 7.5 billion downloads, up 8% from the previous year.
Notably, four games and one app surpassed the $1 billion consumer spending milestone in 2024. These include Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and WeTV. The comprehensive analysis provided by Sensor Tower covers both the iOS App Store and Google Play, excluding third-party stores in regions like China. This data paints a vivid picture of the evolving digital landscape, highlighting the pivotal role of AI and other emerging technologies in shaping consumer behavior and industry trends.