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How AI apps became the biggest winners in mobile spending

Global consumer spending on mobile apps hit $150 billion in 2024, while downloads of AI-powered apps soared to 17 billion, solidifying AI’s dominance in the digital economy.

  • Marina Mouka
  • January 24, 2025
  • 4 minutes

The global mobile app market continued its ascent in 2024, reaching unprecedented levels of consumer spending and engagement while witnessing the growing influence of artificial intelligence (AI) in everyday digital interactions.

According to Sensor Tower’s latest State of Mobile report, consumer spending on apps surged to $150 billion globally, marking a 13% year-over-year (YoY) increase. However, the most striking development of the year was the meteoric rise of AI-powered applications, which captured both time and wallets at an unprecedented rate.

Non-Gaming Apps Drive Growth, While AI Chatbots Steal the Spotlight

For the fourth consecutive year, non-gaming apps outpaced games in consumer spending growth, increasing by $14 billion—a 25% YoY leap. Among these, film and television streaming ($11.9 billion) and social media ($11.7 billion) apps dominated. Yet, it was AI chatbots and tools that emerged as the defining trend of 2024.

Generative AI apps like ChatGPT, Google Gemini, and Doubao saw consumer spending climb to nearly $1.1 billion, a staggering 200% YoY increase. Time spent on these apps exceeded 7.7 billion hours globally, while apps featuring AI functionality were downloaded 17 billion times. With this momentum, AI-powered applications are poised to enter the ranks of top revenue-generating app categories within the next year.

“Consumers are increasingly comfortable making purchases on their devices, and apps have adapted their strategies to capitalize on this attention,” said Oliver Yeh, CEO and Co-founder of Sensor Tower. “As AI evolves, we anticipate more creative integrations that further enhance the consumer digital experience.”

Signs of Digital Fatigue in Mature Categories

Despite record-breaking spending, signs of digital fatigue began to emerge in some of the most mature app categories. Streaming platforms, while continuing to generate revenue growth, experienced a slight decline in engagement. The challenge for these platforms is twofold: maintaining user loyalty in a highly saturated market and overcoming low switching costs that make it easier for users to migrate between services.

This fatigue hasn’t slowed all sectors, however. Food and drink apps, which bridge digital and physical experiences, saw a notable boost. Downloads grew by 8.5% YoY, and session counts rose by 9.2% YoY as more businesses integrated app-based solutions into their customer service and purchasing processes.

AI Adoption Surpasses Expectations

AI adoption has proven to be a transformative force, reshaping how consumers interact with their devices. ChatGPT alone achieved a 500% YoY increase in monthly active users, surpassing 50 million and outpacing early growth benchmarks set by popular apps like Temu and Disney+. This rapid adoption highlights a broader consumer appetite for AI-driven solutions that offer personalization, efficiency, and seamless integration into daily routines.

Key Trends and Insights

  • The Billion-Dollar Club Expands: Mobile gaming and streaming apps remained lucrative, with Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and WeTV all surpassing $1 billion in annual consumer spending.
  • Finance Apps on the Rise: Mobile wallets and digital banking apps continued to thrive, nearing 7.5 billion downloads (+8% YoY) as users sought financial convenience.
  • Cryptocurrency’s Mainstream Moment: Apps like Binance and Tonkeeper ranked among the top 10 finance apps by downloads, signaling a growing global appeal for cryptocurrency-related services.
  • Chinese E-Tailers Lead Retail: Temu and SHEIN strengthened their foothold in global markets, becoming the most downloaded retail apps in Europe, Latin America, and Asia.

A Look Ahead

The app ecosystem’s evolution shows no signs of slowing, particularly as AI adoption continues to shape consumer expectations. The fusion of AI into app ecosystems signals a new era where digital and physical interactions are increasingly intertwined. Yet, for established categories like streaming, sustaining engagement in a saturated market remains a formidable challenge.

As businesses navigate this dynamic landscape, the focus will shift toward creating innovative, AI-powered solutions that keep consumers engaged and drive loyalty. Sensor Tower’s report provides a comprehensive roadmap for understanding these shifts, highlighting opportunities for app developers and businesses alike to capture value in 2025 and beyond.