The mobile app industry has witnessed an unprecedented surge in the adoption of Artificial Intelligence (AI) technology, particularly in the realm of generative AI. In this report, we delve into the remarkable growth of AI-powered apps, with a focus on the generative AI segment that earned nearly $1.3 billion in global in-app purchase revenue across iOS and Google Play in 2024.
The rise of generative AI is largely attributed to the explosive popularity of chatbots and art generators. These innovative apps have captured the attention of millions of users worldwide, with AI Chatbot downloads reaching an astonishing 427 million in Q4 2024 alone. The growth trajectory has been nothing short of phenomenal, with IAP revenue climbing from $30 million in 2022 to nearly $1.3 billion in 2024.
While ChatGPT dominates the generative AI landscape, boasting roughly 40% of global IAP revenue and 23% of downloads in 2024, other notable players have emerged to challenge its supremacy. Notable mentions include Google Gemini, ByteDance's Doubao, Microsoft Copilot, and the latest breakout star, DeepSeek.
The proliferation of AI technology extends far beyond chatbots and art generators. A closer examination reveals that various categories, such as Photo & Video, Productivity, Utilities, and Education, have begun to leverage AI features in their apps. This trend is likely to continue, with more than 3,000 apps introducing AI-related terms for the first time in 2024.
The impact of AI on mobile apps is undeniable. Fifteen different categories now feature at least 100 apps with AI-related terms, highlighting the widespread adoption of this technology. In 2024 alone, apps mentioning AI were downloaded an impressive 17 billion times, accounting for approximately 13% of all app downloads.
As the landscape continues to evolve, it's essential for developers to stay abreast of the latest advancements in AI and its applications. With new and creative AI features emerging, it's crucial to monitor regional and category-level market trends to ensure optimal placement in the ever-changing mobile ecosystem.
Sensor Tower's 2026 State of Mobile Report provides unparalleled insights into this rapidly evolving landscape. Dive deep into regional and category-level market trends made possible by our award-winning digital market insights platform. Claim your copy today!