The Rise of Generative AI in Consumer Apps: A 2024 Overview
As we look into the digital landscape of 2024, one thing becomes crystal clear: the demand for generative AI is significantly shaping consumer spending in the app market. According to the latest “State of Mobile” report from app intelligence provider Sensor Tower, global spending on apps is projected to surge to $150 billion. This reflects a remarkable 13% increase from the previous year, underscoring the growing consumer interest in AI-driven technologies.
Unprecedented Growth in AI App Spending
AI applications have witnessed an extraordinary leap in popularity over the past year. Notably, consumer spending in this category soared by over 200% year-over-year, reaching nearly $1.1 billion in 2024. Key players such as ChatGPT, Gemini, and Bytedance’s Doubao led this surge. If this momentum continues, AI apps could ascend into the top 10 app categories by consumer spending within a year.
“The release of new AI models like OpenAI’s GPT-4o last summer played a pivotal role in driving app revenues to unprecedented levels,” notes Sensor Tower.
– Sensor Tower Report
Consistent Consumer Engagement with AI Apps
Interestingly, consumer demand for AI applications remained steady throughout the year, not just during peak release periods. In 2024 alone, users spent approximately 7.7 billion hours engaging with AI apps. Additionally, apps featuring “AI” were downloaded an astonishing 17 billion times. ChatGPT set a remarkable benchmark by reaching 50 million monthly active users faster than popular platforms like Temu, Disney+, and YouTube Music.
A Broader Look at App Market Trends
While AI apps are undeniably leading the charge, other app categories also experienced noteworthy movements in 2024. Streaming apps, despite seeing increased in-app revenue and downloads, faced a slight dip in user engagement. The crypto sector saw apps like Binance and Tonkeeper climbing into the top 10 finance apps by downloads.
- E-commerce giants Temu and Shein dominated the retail subgenre, particularly due to expansions across Europe, Latin America, and Asia.
- Finance apps exhibited robust double-digit growth in terms of time spent, reaching nearly 7.5 billion downloads – an 8% rise from 2023.
Milestone Achievements in Gaming and Entertainment
This year also marked significant milestones for several apps and games that surpassed $1 billion in consumer spending. These included notable titles such as Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and WeTV.
The full “State of Mobile” report is accessible on Sensor Tower’s website and provides comprehensive insights into trends across iOS App Store and Google Play — though it excludes third-party app stores in regions like China.
