AI apps projected to hit $3.3 billion in revenue by the end of 2024

The AI app market has reached unprecedented heights in 2024, with revenue in the first eight months alone surpassing $2 billion, according to a recent report from Sensor Tower. This explosive growth is driven by the surge in popularity of leading AI apps, with full-year projections expecting total revenue to reach $3.3 billion—a remarkable 51% increase compared to the previous year.

The rapid expansion of the AI app market, initially ignited in 2023, has shown no signs of slowing down. As of August 2024, global revenue for AI apps reached $2 billion, with projections for the remainder of the year pushing the total to $3.3 billion. This remarkable 51% growth underscores the increased maturity of the market, with North America emerging as the primary revenue generator, accounting for 47% of total earnings. Meanwhile, India leads in global downloads, contributing 21% to the total.

Among the numerous AI apps making waves in 2024, OpenAI’s ChatGPT continues to reign supreme. As the undisputed leader in downloads, revenue, and active users, ChatGPT has seen tremendous success. From January to August 2024, the app accumulated more than 160 million downloads and generated nearly $230 million in revenue, with the latter figure growing to $270 million by August. The app also boasts an impressive 190 million monthly active users (MAUs), solidifying its dominance.

In addition to ChatGPT, other apps like Remini, an AI-powered image editing app by Bending Spoons, have also gained significant traction. Thanks to its viral popularity on social media, Remini has secured over 120 million downloads in just the first eight months of 2024, amassing over $200 million in revenue. Newcomers such as Google Gemini and Microsoft Copilot have also made notable appearances on the list of top AI apps by downloads, while ByteDance’s DouBao has distinguished itself as the top Chinese AI app.

In just the first eight months of the year, global in-app purchase revenue from AI-powered chatbot apps reached nearly $580 million, already exceeding 1.5 times the total revenue recorded in 2023. This surge reflects a strong demand for AI chatbots, particularly those offering unique user experiences, such as conversational and emotional companion AI.

One of the more intriguing trends in 2024 is the rise of AI apps designed for emotional companionship. Apps like Character AI and Talkie AI have seen remarkable growth, particularly among younger users. Character AI reached an all-time high of 22 million monthly active users by August 2024, with nearly 19 million downloads recorded during the same period. Talkie AI, a close competitor, has seen strong growth, especially in the United States, where its downloads have outpaced Character AI.

These emotional AI apps are especially popular among users aged 18 to 35, who make up over 70% of the user base. Gender preferences also vary, with apps like Character AI and Talkie AI being more favored by female users, while Linky AI and HiWaifu are more popular among male users.