Generative AI Powers Consumer Spending on Apps to Reach $150 Billion in 2024 Amid a Surge in Demand
Global consumer spending on mobile apps soared to $150 billion in 2024, a significant 13% increase from the previous year, according to Sensor Tower’s latest State of Mobile report.
This record figure is largely driven by the explosive demand for generative AI applications, which has seen consumer spending increase by more than 200% year-over-year. Generative AI applications such as ChatGPT, Gemini, and Bytedance’s Doubao have collectively grossed nearly $1.1 billion, signaling the transformative power of AI in reshaping the app economy.
The report highlights that this growth trajectory, if maintained, could propel generative AI applications into the top 10 application categories in terms of consumer spending within a year. The introduction of cutting-edge AI models, such as OpenAI’s GPT-4o in mid-2024, has contributed to increased revenues from AI-based applications, but their appeal has remained constant throughout. throughout the year.
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Consumers spent an impressive 7.7 billion hours using AI applications during the year, reflecting strong and sustained interest. Apps mentioning “AI” in their descriptions were downloaded 17 billion times in 2024 alone, further highlighting the growing appetite for AI-based solutions.
Notably, ChatGPT reached a remarkable milestone of 50 million monthly active users faster than popular platforms like Temu, Disney+ or YouTube Music, demonstrating the widespread adoption of generative AI tools.
Other app categories saw varied performance in 2024. Streaming apps, for example, saw modest growth in revenue and downloads, but engagement levels showed a slight decline, suggesting possible saturation of the market. Crypto apps have seen notable success, with platforms like Binance and Tonkeeper ranking among the top 10 financial apps in terms of downloads. In e-commerce, Temu and Shein have maintained their dominance in the retail subgenre, benefiting from aggressive expansion efforts in Europe, Latin America and Asia. Meanwhile, financial apps saw double-digit growth in time spent, with nearly 7.5 billion downloads, an 8% increase from 2023.
In addition to these developments, four games and one app surpassed the $1 billion mark in consumer spending in 2024. These included Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars and WeTV, illustrating sustained growth in the gaming and streaming sectors. .
The rise of the AI economy
The rapid rise of generative AI is not limited to consumer engagement, but also reflects broader trends in investment and economic impact. A study conducted by Writerbuddy, analyzing the 50 largest AI companies in 2024, found that these companies have collectively raised $52.8 billion in funding by October 2024. This figure represents a massive 600% increase in investments compared to 2023, signaling an extraordinary level of confidence in the potential of AI to reshape industries and economies.
The total valuation of these major AI companies reached $358.37 billion, with OpenAI alone securing $21.9 billion in funding, solidifying its position as the industry leader. AI infrastructure and model development emerged as the most funded areas, reflecting their critical role in advancing the technology.
Investment trends over the past five years highlight the meteoric rise of AI. In 2020, AI funding was $3.5 billion, indicating an early adoption phase of the technology. In 2021, funding increased to $5.2 billion as use cases gained traction across various industries. A temporary decline in 2022 saw investments fall to $3.2 billion, likely due to broader economic challenges and market uncertainties.
However, 2023 witnessed an extraordinary resurgence, with funding soaring to $20.7 billion, a nearly 600% increase from 2020. By 2024, funding had already reached $20.2 billion. billion dollars in October, a sign of continued enthusiasm for AI technologies.
This increase in funding and interest is indicative of the growing role of artificial intelligence in shaping the global economy. Generative AI, in particular, has proven its transformative potential, not only in driving consumer engagement and spending, but also in attracting unprecedented levels of investment. While the future of AI appears promising, its rapid adoption also raises questions of governance, ethics and societal impact, as the technology continues to evolve at an astonishing pace.
Writerbuddy noted in its report: “The five-year trend highlights a dramatic increase in funding, driven by advances in AI and broader acceptance of its role in shaping the future. »
