The AI bubble hasn’t burst but, not less than in relation to shopper spending on AI apps.
Led by OpenAI’s ChatGPT, general spending on AI apps jumped to $1.42 billion in 2024, in response to app analytics agency Appfigures. This marks a 274% enhance from 2023 (the app launched in Might of that yr). Amongst tens of 1000’s of competitor apps — a few of which license OpenAI’s personal know-how — ChatGPT is so dominant that it has constantly earned greater than the mixture income of different high AI assistant apps.
The success of those apps can also be a boon for Apple and Google, which retain about 30% of income from in-app purchases. Total, cell AI apps represent a $2 billion market, in response to Appfigures.
ChatGPT has been downloaded 353 million instances to this point, however the demographics that use the app are skewed. Over half of ChatGPT’s cell customers are below age 25, indicating that maybe younger individuals are extra open to experimenting with new know-how (or, possibly, these customers simply need assist with their homework — the Pew Analysis Middle estimates {that a} quarter of U.S. teenagers have used ChatGPT for schoolwork, which has doubled from 2023).
Nevertheless, customers between ages 50 and 64 make up the second largest age demographic, with 20.2% of customers.
The gender hole amongst ChatGPT customers is much more vital. Appfigures estimates that throughout age teams, males make up 84.5% of all customers.
Although ladies maintain outstanding roles within the AI trade, a Pew report from 2022 signifies that ladies are usually extra skeptical about AI than males; an Axios ballot discovered that 53% of girls surveyed wouldn’t enable their kids to make use of AI in any respect, versus 26% of males. In the meantime, McKinsey estimates that ladies will likely be extra more likely to lose their jobs to automation than their male counterparts, which might drive additional resistance.
Ladies may also be much less enthusiastic concerning the mass adoption of shopper AI merchandise as a result of they’re significantly weak to probably the most sinister impacts of this know-how, like sexually express deepfake pictures.
ChatGPT is solidly profitable the lion’s share of AI app spending, however with DeepSeek coming available on the market as a free, open supply different, the OpenAI app might even see slight headwinds. DeepSeek has already dethroned OpenAI as the highest app within the App Retailer, however sustaining its present stage of hype might be a problem for the Chinese language AI app.