AI-Powered Apps Hit $1 Billion in Sales with ChatGPT and Gemini at the Helm in 2024

Tristan Collins
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Artificial intelligence (AI) is quickly becoming the foundation for advancements in the tech industry, influencing both short-term growth and long-term innovation.

As a result, we’ve seen a significant upswing in consumer spending on AI-powered apps, with a record $1 billion spent in 2024 alone.

This spending was primarily driven by the integration of AI in mobile technologies, where giants like Google and Samsung have been at the forefront.

AI-enabled apps are transforming the way we interact with technology on a daily basis. Features that once seemed futuristic, like image and video editing tools, are now indispensable for many.

These applications simplify complex editing tasks, allowing users to make significant modifications or style transformations with just a few taps.

However, the best of these features often come at a cost. Most AI apps offer a free trial of their premium services, but once those trials expire, a purchase is necessary to continue usage.

The recent report underscores the increasing willingness of users to invest in apps with AI capabilities.

According to the report, AI features contributed to an overall increase in app spending to $150 billion in 2024, marking a 13% rise from the previous year.

High-demand AI apps like ChatGPT, Gemini, and ByteDance’s Doubao are not just popular; they’re lucrative, having boosted year-over-year app-related consumer spending by 200%.

The staggering figures don’t stop there. AI apps racked up 7.7 billion usage hours and were downloaded approximately 17 billion times last year alone.

These numbers suggest a rapidly growing market that could soon place AI apps among the top 10 categories for annual consumer expenditure.

Among these, ChatGPT has emerged as a standout, swiftly attracting 50 million monthly active users faster than competitors like Temu, Disney+, or YouTube Music.

This surge in popularity highlights a broader trend: people are not just using AI apps, they’re integrating them into their daily routines, signaling a significant shift in consumer technology engagement.

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Tristan has a strong interest in the intersection of artificial intelligence and creative expression. He has a background in computer science, and he enjoys exploring the ways in which AI can enhance and augment human creativity. In his writing, he often delves into the ways in which AI is being used to generate original works of fiction and poetry, as well as to analyze and understand patterns in existing texts.