The demand for generative AI is propelling global consumer spending on apps to $150 billion in 2024, a 13 percent increase from the previous year.
According to the annual “State of Mobile” report from app intelligence provider Sensor Tower, which acquired Data.ai, interest in AI apps has surged over the past year. This heightened interest has resulted in over 200 percent year-over-year increase in consumer spending on AI applications like ChatGPT, Gemini, ByteDance’s Doubao, and others, resulting in total expenditures in this category approaching $1.1 billion in 2024. If this growth trajectory continues, AI apps could potentially break into the top 10 by consumer spending within a year, as noted by the firm.
Consistent consumer demand for AI apps
The introduction of new AI models, such as OpenAI’s GPT-4o last summer, has contributed to app revenue reaching record highs at various points throughout the year. However, consumer demand for AI apps remained steady, not just during these peak periods. Consequently, users dedicated nearly 7.7 billion hours to AI applications in 2024, while apps incorporating the term “AI” were downloaded 17 billion times within the year. Notably, ChatGPT achieved an impressive milestone of 50 million monthly active users—outpacing the growth rates of platforms like Temu, Disney+, and YouTube Music.
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Expanding landscape of app categories
This trend highlights a continuing appetite for AI apps and those featuring AI capabilities. Other app categories experiencing notable movement in 2024 included streaming, cryptocurrency, e-commerce, and fintech. While streaming apps faced a slight drop in engagement, they nevertheless reported growth in in-app revenue and downloads. Cryptocurrency applications such as Binance (No. 6) and Tonkeeper (No. 9) ascended into the top 10 finance apps by downloads in 2024. In the retail subgenre, e-commerce apps Temu and Shein captured the No. 1 and No. 2 spots, respectively, fueled by their expansions into Europe, Latin America, and Asia.
Major milestones in consumer spending
Additionally, Sensor Tower reported that four games and one app achieved the significant milestone of surpassing $1 billion in consumer spending in 2024. These include titles such as Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and WeTV.
The complete report can be accessed on Sensor Tower’s website and provides a comprehensive analysis of the iOS App Store and Google Play, excluding any third-party app stores in regions like China.
