Global consumer spending on mobile apps soared to $150 billion in 2024, a significant 13% increase from the previous year, according to the latest State of Mobile report by Sensor Tower.
This record-breaking figure was largely driven by the explosive demand for generative AI apps, which saw consumer spending increase by over 200% year-over-year. Generative AI apps such as ChatGPT, Gemini, and Bytedance’s Doubao collectively brought in nearly $1.1 billion, signaling the transformative power of AI in reshaping the app economy.
The report highlighted that this growth trajectory if sustained, could propel generative AI apps into the top 10 app categories by consumer spending within a year. The introduction of cutting-edge AI models, such as OpenAI’s GPT-4o in mid-2024, contributed to spikes in revenue for AI-powered apps, but their appeal remained consistent throughout the year.
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Consumers spent a staggering 7.7 billion hours using AI apps during the year, reflecting strong and sustained interest. Apps mentioning “AI” in their descriptions were downloaded 17 billion times in 2024 alone, further underscoring the expanding appetite for AI-driven solutions.
Notably, ChatGPT reached a remarkable milestone of 50 million monthly active users faster than popular platforms like Temu, Disney+, or YouTube Music, demonstrating the widespread adoption of generative AI tools.
Other app categories experienced varied performance in 2024. Streaming apps, for instance, saw modest growth in revenue and downloads, but engagement levels showed a slight decline, suggesting possible saturation in the market. Crypto apps experienced notable success, with platforms like Binance and Tonkeeper ranking among the top 10 finance apps by downloads. In e-commerce, Temu and Shein maintained their dominance in the retail subgenre, benefiting from aggressive expansion efforts in Europe, Latin America, and Asia. Meanwhile, finance apps achieved double-digit growth in time spent, with nearly 7.5 billion downloads, representing an 8% increase from 2023.
In addition to these developments, four games and one app surpassed the $1 billion milestone in consumer spending in 2024. Among them were Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and WeTV, showcasing sustained growth in the gaming and streaming industries.
The Rise of AI Economy
The rapid rise of generative AI is not limited to consumer engagement but also reflects broader trends in investment and economic impact. A study conducted by Writerbuddy, analyzing the top 50 AI companies in 2024, revealed that these firms collectively raised $52.8 billion in funding by October 2024. This figure marked a massive 600% surge in investments compared to 2023, signaling an extraordinary level of confidence in AI’s potential to reshape industries and economies.
The total valuation of these top AI companies reached $358.37 billion, with OpenAI alone securing $21.9 billion in funding, solidifying its position as a leader in the sector. AI infrastructure and model development emerged as the most heavily funded areas, reflecting their critical role in advancing the technology.
The investment trends over the past five years underscore AI’s meteoric rise. In 2020, funding for AI stood at $3.5 billion, indicating the technology’s early adoption phase. By 2021, funding increased to $5.2 billion as use cases gained traction across various industries. A temporary dip in 2022 saw investments fall to $3.2 billion, likely due to broader economic challenges and market uncertainties.
However, 2023 witnessed an extraordinary resurgence, with funding skyrocketing to $20.7 billion—a nearly 600% increase compared to 2020. By 2024, funding had already reached $20.2 billion as of October, signaling sustained enthusiasm for AI technologies.
This surge in funding and interest is indicative of the growing role of artificial intelligence in shaping the global economy. Generative AI, in particular, has proven its transformative potential, not only by driving consumer engagement and spending but also by attracting unprecedented levels of investment. While the future of AI appears promising, its rapid adoption also raises questions about governance, ethics, and societal impact, as the technology continues to evolve at an astonishing pace.
Writerbuddy noted in its report, “The five-year trend highlights a dramatic increase in funding, driven by advancements in AI and broader acceptance of its role in shaping the future.”