User spending on mobile apps with artificial intelligence features skyrocketed in 2024, increasing by more than 200% year-over-year to reach nearly $1.1 billion, according to Sensor Tower's annual State of Mobile report. Demand for generative AI smartphone apps, such as ChatGPT, Gemini, and ByteDance's Doubao, contributed significantly to this growth, helping to drive global app spending to $150 billion - a 13% increase over the previous year.
The popularity of mobile AI applications demonstrates a broader trend of increasing user engagement. According to a report by Sensor Tower, which was acquired by Data.ai in March, AI apps alone accounted for 7.7 billion hours of user activity in 2024. These apps were downloaded 17 billion times, and ChatGPT reached 50 million monthly active users, surpassing popular apps such as Temu, Disney+, and YouTube Music in terms of audience engagement.
The release of new AI language models, such as OpenAI's GPT-4o, fueled user interest throughout the year, with spending and engagement remaining consistently high even outside of the peak moments following the announcements.
In addition to AI, other categories of mobile applications also underwent significant changes in 2024:
- Streaming services: despite the growth of downloads and revenues in mobile applications, the overall level of user engagement has slightly decreased, which may indicate market saturation;
- Crypto apps: platforms such as Binance and Tonkeeper are among the top 10 financial apps by number of downloads;
- E-commerce apps: Temu and Shein remain the market leaders, taking the top two spots among retail apps thanks to their active expansion into Europe, Latin America, and Asia;
- Financial apps: the time spent using financial apps has increased, and the number of downloads has approached 7.5 billion - 8% more than in 2023.
The report also noted five mobile apps that reached the billion-dollar mark in consumer spending in 2024. These are the mobile games Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and the streaming app WeTV.
If the current dynamics continue, AI applications could radically change the mobile app economy. The State of Mobile report predicts that the rapid growth of this sector will further strengthen the role of artificial intelligence in consumer technology.