App spending on AI chatbots tripled in 2024 – report

Mobile app spending on generative AI-powered chatbots such as ChatGPT tripled globally in 2024, according to new data.

The annual State of Mobile report from digital economy data firm Sensor Tower said consumer spending on in-app purchases and subscriptions to AI chatbot apps reached 1.1 billion dollars (£893 million).

The report said AI chatbot apps saw the biggest surge in interest from consumers during last year, with time spent in those apps exceeding 7.7 billion hours, while apps mentioning “AI” were downloaded 17 billion times.

In 2024, generative AI chatbots became increasingly more ubiquitous as models such as Google’s Gemini launched as a standalone app for the first time, while OpenAI expanded the availability of ChatGPT, and a number of other apps also became available on mobile devices.

In-app purchases

Away from AI, the report said consumer spending on in-app purchases and subscriptions reached 150 billion dollars globally, an 13% increase on the previous year.

Smartphone users also clocked up 4.2 trillion hours of use, the report said, up 5.8% year-on year.

However, the number of app downloads actually fell slightly to 136 billion in 2024, down 1% on the previous year.

In the UK, in-app purchase revenue was 55.1 million dollars (£48 million), up from 24.5 million dollars (£20 million) in 2023, and downloads rose to 30.8 million from 22.5 million in 2023.

Oliver Yeh, chief executive of Sensor Tower, said: “Apps continue to capture consumer attention, particularly in non-games.

“And as consumers spend more time on mobile, they are becoming far more comfortable making purchases on their devices.

“Apps have shifted their monetisation strategies to capitalise on this increased attention, finding innovative ways to streamline and improve consumers’ digital experience.

“As we look ahead, we expect to see more apps experiment with AI, finding novel and creative ways of incorporating the technology.”