Global spending on mobile apps powered by generative AI, including chatbots like ChatGPT, surged significantly in 2024, according to recent data.
The State of Mobile report from digital economy analytics firm Sensor Tower revealed that consumer spending on in-app purchases and subscriptions for AI chatbot apps reached $1.1 billion (£893 million).
The report highlighted that AI chatbot apps experienced a massive rise in popularity last year, with users dedicating over 7.7 billion hours to these apps. Additionally, apps referencing “AI” were downloaded a staggering 17 billion times during the year.
Oliver Yeh, chief executive of Sensor Tower, noted: “Apps continue to capture consumer attention, particularly in non-games. And as consumers spend more time on mobile, they are becoming far more comfortable making purchases on their devices.”
The increasing ubiquity of generative AI chatbots in 2024 was marked by milestones such as the launch of Google’s Gemini as a standalone app, the expanded availability of ChatGPT by OpenAI, and the introduction of several other AI-powered mobile apps.
What Does this Mean for the Future of AI
The growth in spending and engagement with AI-powered apps signals a transformative shift in how consumers interact with technology. As AI tools become more integrated into everyday life, we can expect industries beyond technology to adopt AI solutions to streamline processes, improve user experiences, and offer personalised services.
Innovative models like generative AI are likely to influence sectors such as education, healthcare, and customer service, where they can handle complex queries, deliver adaptive learning experiences, and provide more efficient support. With companies exploring creative ways to embed AI into their offerings, this trend could spark a new wave of app development focused on smarter, more responsive solutions.
Oliver Yeh predicts this evolution will continue: “Apps have shifted their monetisation strategies to capitalise on this increased attention, finding innovative ways to streamline and improve consumers’ digital experience. As we look ahead, we expect to see more apps experiment with AI, finding novel and creative ways of incorporating the technology.”
Key Trends in Mobile App Usage
Beyond AI, the report revealed that global consumer spending on in-app purchases and subscriptions reached $150 billion in 2024, reflecting a 13% increase compared to the previous year. Smartphone users spent a total of 4.2 trillion hours on their devices, a 5.8% year-on-year increase.
Despite these trends, the total number of app downloads dipped slightly to 136 billion, a 1% decline compared to 2023.
In the UK, revenue from in-app purchases saw notable growth, rising to $55.1 million (£48 million) from $24.5 million (£20 million) in 2023. App downloads in the region also increased, climbing to 30.8 million from 22.5 million the previous year.
Yeh added: “Apps continue to capture consumer attention, particularly in non-games. And as consumers spend more time on mobile, they are becoming far more comfortable making purchases on their devices.”
