AI Apps Drive $1.1 Billion in Consumer Spending in 2024

 AI Apps Drive $1.1 Billion in Consumer Spending in 2024

Global consumer spending on mobile apps reached $150 billion in 2024, a 13% year-over-year increase, fueled by the growing demand for generative AI. According to Sensor Tower’s annual “State of Mobile” report, AI apps experienced a dramatic surge in interest, with consumer spending in this category increasing over 200% year-over-year to nearly $1.1 billion. Notable contributors included apps like ChatGPT, Gemini, and ByteDance’s Doubao.

If this growth trend continues, AI apps could rank among the top 10 app categories by consumer spending within a year, the report suggests.

OpenAI’s release of GPT-4o in 2023 played a significant role in driving record app revenues. However, consistent demand throughout 2024, not just during peak launches, drove consumers to spend nearly 7.7 billion hours using AI apps and download apps mentioning “AI” 17 billion times.

ChatGPT alone set a benchmark, reaching 50 million monthly active users faster than major platforms like Disney+, YouTube Music, or Temu. This highlights the sustained interest in AI-powered applications.

Shifts in Other App Categories

Beyond AI, other app categories experienced notable trends in 2024:

• Streaming: While in-app revenue and downloads grew, engagement saw a slight decline.

• Crypto: Apps like Binance and Tonkeeper climbed into the top 10 finance apps by downloads.

• E-commerce: Temu and Shein led the retail subgenre globally, expanding into Europe, Latin America, and Asia.

• Finance: This sector achieved double-digit growth in time spent, nearing 7.5 billion downloads, an 8% increase from 2023.

Additionally, four games and one app surpassed $1 billion in consumer spending. These included Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and WeTV.

The full report, available on Sensor Tower’s website, offers insights into trends across the iOS App Store and Google Play but excludes data from third-party app stores in regions like China.