AI apps revenue hits $1.3B in 2024

• In-app purchases on AI apps soared to $1.3 billion in 2024, up 180% from 2023.
• Downloads of GenAI apps reached 1.49 billion, with the US leading the market.

What happened: Generative AI apps revenue skyrockets

In 2024, revenue from in-app purchases (IAP) on generative AI applications surged to $1.3 billion globally, marking an impressive 180% increase compared to 2023. This growth was driven by apps like ChatGPT, Google Gemini, and China’s Doubao, which contributed significantly to the $1.1 billion consumer spending on AI chatbots alone.

Sensor Tower’s annual State of Mobile report highlighted a corresponding rise in GenAI app downloads, which reached 1.49 billion, a sharp increase from 777 million in 2023. The US dominated the market with $558 million in IAP revenue and 200 million downloads, accounting for 45% of the global total. Other leading markets included the UK, Germany, Japan, and Canada.

Despite its rapid growth, the GenAI segment remains relatively small within the $150 billion global mobile app market. However, its growth trajectory suggests it could soon climb into the top 10 app categories by consumer spending.

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Why it’s important

Generative AI apps have transitioned from niche tools to mainstream digital products. With a 180% revenue growth rate in 2024, they demonstrate significant consumer interest in AI-powered solutions. The rise of apps like ChatGPT and Google Gemini signals a broader adoption of AI technologies, pushing app developers to integrate AI into their offerings.

Moreover, the $1.3 billion in revenue reflects not just consumer enthusiasm but also the willingness to pay for premium AI features. This trend aligns with the growth of the global mobile app market, which generated $150 billion last year. As the US continues to lead in both revenue and downloads, other regions like Europe and Asia are also driving notable growth, suggesting that the GenAI market’s expansion is far from over.