Mobile genAI apps hit mass adoption and fuel $1.1 billion YoY revenue surge

The news: Generative AI (genAI) apps like OpenAI’s ChatGPT and Anthropic’s Claude drove a massive 200% increase in consumer spending on AI mobile apps, reaching $1.1 billion in 2024, per Sensor Tower’s State of Mobile report. 

The rise of genAI apps highlights a shift in AI adoption and mobile preferences, revealing revenue potential despite the availability of free on-device options like Apple Intelligence and Google Gemini. This indicates a consumer preference for custom AI tools over default options.

GenAI’s mobile moment: AI tools on smartphones and tablets broke into the top 10 app spending categories for the first time.

• Consumers are finding increased value in spending on AI apps, which could lead to an increase in subscriptions and in-app purchases in the segment. 
• The genAI mobile app revenue surge is a result of increased competition and AI’s move from browsers to apps.

Zooming out: Overall, in-app spending grew 13% YoY to $150 billion globally, with non-gaming apps outpacing gaming apps—25% versus 4%, respectively.

• Social media ($11.7 billion) and streaming ($11.9 billion) led all mobile app revenues. Each category was driven by contrasting profit models—creator tipping and commissions for social media, and subscriptions for streaming.
• Mobile phone usage rose 5.8% YoY to 4.2 trillion hours worldwide, with notable growth in downloads for food and drink apps, which was up 8.5% YoY, and finance apps,  up 8% YoY. This indicates a market shift from entertainment and gaming to basic necessities.

Our take: With genAI transcending chatbots and becoming mission-critical tools thanks to AI agents, there’s an opportunity for AI-powered apps to take over other app categories. 

App segments that could benefit from AI agent makeovers include banking, business productivity, search, and even instant messaging.

This article is part of EMARKETER’s client-only subscription Briefings—daily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you start 2025 off on the right foot, articles like this one—delivering the latest news and insights—are completely free through January 31, 2025. If you want to learn how to get insights like these delivered to your inbox every day, and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.