AI apps like ChatGPT and Gemini aren’t just trending – they’re a billion-dollar industry in 2024

AI apps like ChatGPT and Gemini aren’t just trending – they’re a billion-dollar industry in 2024

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Did someone say AI? Get ready because you'll be seeing these two characters a lot in the next few paragraphs. It's no secret that AI is quickly becoming a major force for tech companies, and it's already making waves in the mobile world.

Just look at recent phone releases - Google Pixel 9 series, Apple's iPhone 16 series, and the new ones Samsung Galaxy S25 series - all of them have a heavy focus on AI. And frankly, this isn't going to change anytime soon, considering that AI applications are already a billion-dollar industry.

Generative AI has been a big driver behind the boom in consumer spending on apps, which will total $150 billion in 2024, representing a 13% increase from the previous year, according to the latest Mobile phone status report.

Spending on AI applications like ChatGpt, Gemini, and Bytedance Doubao has surged, jumping from $455 million in 2023 to nearly $1.3 billion in this category in 2024.

By the end of 2024, some of the biggest names in Tech — Google with Gemini, Bytedance with Doubao, and Microsoft with Copilot — have rolled out their own AI chat tools. This sparked a huge 119% year-over-year jump in AI chatbot downloads in Q4 2024. AI tech generators followed closely behind, hitting 85 million downloads, representing a 21% increase from the previous year. Nearly 40% of global consumer spending is on generative AI apps and downtime will account for 23% of all downloads in 2024.

In 2024, the United States dominates the market for generative AI applications, with 45% of global revenue captured. The UK comes in second, contributing around 4% of the total, with Germany, Japan and Canada each claiming 3% of the share.

AI no longer just dominates chat and art generators – it's spreading into all kinds of applications. In the last two years, 15 app categories have added AI-related terms to their names or descriptions. This includes popular areas like productivity, photos, video, and education, but also extends into unexpected categories like lifestyle, finance, music, and shopping.

Furthermore, while new AI models like the GPT-4O sparked some big revenue jumps, demand for AI applications remained flat throughout the year. In total, consumers spent nearly 7.7 billion hours on AI apps in 2024, and apps with AI in the title saw 17 billion downloads.

In general, people seem to be getting more comfortable with artificial intelligence. Although I'm not the biggest fan and think some of these AI features are a bit unnecessary, I can't deny that some of them are really useful and fun. In the end, many people now see AI as essential for everyday or occasional use, and the figure certainly shows that. What about you? Do you use any AI applications?

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Did someone say AI? Get ready because you’ll be seeing these two characters a lot in the next few paragraphs. It’s no secret that AI is quickly becoming a major force for tech companies, and it’s already making waves in the mobile world.

Just look at recent phone releases – Google Pixel 9 series, Apple’s iPhone 16 series, and the new ones Samsung Galaxy S25 series – all of them have a heavy focus on AI. And frankly, this isn’t going to change anytime soon, considering that AI applications are already a billion-dollar industry.

Generative AI has been a big driver behind the boom in consumer spending on apps, which will total $150 billion in 2024, representing a 13% increase from the previous year, according to the latest Mobile phone status report.

Spending on AI applications like ChatGpt, Gemini, and Bytedance Doubao has surged, jumping from $455 million in 2023 to nearly $1.3 billion in this category in 2024.

By the end of 2024, some of the biggest names in Tech — Google with Gemini, Bytedance with Doubao, and Microsoft with Copilot — have rolled out their own AI chat tools. This sparked a huge 119% year-over-year jump in AI chatbot downloads in Q4 2024. AI tech generators followed closely behind, hitting 85 million downloads, representing a 21% increase from the previous year. Nearly 40% of global consumer spending is on generative AI apps and downtime will account for 23% of all downloads in 2024.

In 2024, the United States dominates the market for generative AI applications, with 45% of global revenue captured. The UK comes in second, contributing around 4% of the total, with Germany, Japan and Canada each claiming 3% of the share.

AI no longer just dominates chat and art generators – it’s spreading into all kinds of applications. In the last two years, 15 app categories have added AI-related terms to their names or descriptions. This includes popular areas like productivity, photos, video, and education, but also extends into unexpected categories like lifestyle, finance, music, and shopping.

Furthermore, while new AI models like the GPT-4O sparked some big revenue jumps, demand for AI applications remained flat throughout the year. In total, consumers spent nearly 7.7 billion hours on AI apps in 2024, and apps with AI in the title saw 17 billion downloads.

In general, people seem to be getting more comfortable with artificial intelligence. Although I’m not the biggest fan and think some of these AI features are a bit unnecessary, I can’t deny that some of them are really useful and fun. In the end, many people now see AI as essential for everyday or occasional use, and the figure certainly shows that. What about you? Do you use any AI applications?



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