The Artificial Intelligence (AI) revolution is in full swing, transforming industries and reshaping millions of users’ interactions with technology. If this year proved one thing, AI is not coming; it’s already here and driving rapid change.
Using Business Of Apps’ 2024 AI report, we have explored the growth of AI-powered applications since it’s recent surge in popularity, whilst also highlighting key data points and projections over the next 6 years.
Data Highlights
- AI apps see a 98% drop in users within 30 days.
- ChatGPT is projected to earn 5x more than Microsoft in AI revenue by 2028.
- The AI app market is set to hit $33.3 billion by 2030
- AI app downloads surpassed 1 billion in 2024.
- AI apps should expect over 500m users by 2030
- OpenAI leads the market with a current app valuation of $80 million
AI Apps Proven To Have The Worst Retention Rate Among All App Categories
Getting users to download AI apps is the easy part. The challenge is keeping them on the app.
About 88% of people will use the app for one day only. By day 7, that number moves to less than 95%.
By day 30, 98% of users will give up on an AI app.
Microsoft Predicted To Achieve 1 Billion AI Revenue In 2028
In 2022, OpenAI launched ChatGPT, an AI chatbot that generates human-like conversations when prompted. ChatGPT can answer questions, create computer code, solve equations, process images, write articles, and more.
Chat GPT can complete something as simple as providing a recipe for a cake to a more complex task like coding an app.
In 2024, Chapt GPT’s revenue projection is $1.15 billion, an increase of 109% from 2023.
If the trend continues, it should reach $5.15 billion by 2028, a 836% increase from 2023.
These numbers estimate ChatGPT’s revenue from individuals and organizations subscribing to it. If ChatGPT becomes embedded into consumer apps and enterprise services, the projected revenue could increase even higher.
Microsoft’s projections are based on revenue from Copilot Pro, the company’s AI chatbot originally based on the GPT-4 series.
Released in February 2023, Microsoft’s direct revenue from Copilot Pro was $40 million. 2024’s projection is supposed to increase by 212% to $125 million.
2028’s projection should hit $1 billion. However, these revenue projections do not include Copilot for coding and Microsoft’s other GPT integrations.
AI App Market Revenue Projected To Reach $33.3 Billion By 2030
The AI App market hit $1.4 billion in revenue in the first half of 2024. That is a 27% increase from the second half of 2023.
In two years, revenue from the AI App market increased from $400 million in the second half of 2022 to $1.4 billion by the first half of 2024, a 250% increase.
If the AI App market continues to trend upward, it will reach unprecedented heights over the next six years.
The AI App market’s forecasted revenue was $3.1 billion in 2024. In 2025, that number is expected to increase by over 77% and reach $4.4 billion.
The experts predict revenue will reach $33.3 billion by 2030, a 974.19% increase from 2024.
AI App Downloads Exceeded 1 Billion During 2024
While AI apps will have 252 million users in 2024, the number of AI app downloads is four times that amount.
In the first half of 2024, AI app downloads were 1.045 billion. Compared to 2022’s 282 million, that’s over a 270% increase.
Users Of AI Apps Estimated To Hit Over 500 Million By 2030
Three years ago, AI apps were in their infancy stage, with an estimated 18 million users in 2021.
When OpenAI launched ChatGPT in November 2022, AI app users skyrocketed to 108 million.
2024 is only the beginning of exponential growth for AI apps.
The experts analysis predicts over 500 million people will use AI by 2030.
These apps will continue to rely on chatbots and image editing tools as the main services.
OpenAI Valued At $80m In 2024
Per our study, OpenAI is the highest-valued startup at $80 billion.
Databricks, which could IPO within the next year, garnered the second-highest valuation at $43 billion.
Commentary
Neil Roarty, spokesperson of CasinoApps spoke out on the data: “The AI market numbers are staggering, with revenue from AI apps potentially surpassing $33 billion.
“Many of these AI apps, including ChatGPT, are being integrated into the workplace at a rapid pace. These apps primarily rely on chatbots and image editing tools as the main services, which automate tedious tasks and improve efficacy.
“The increased use of AI apps could enhance personalized learning in school systems and enhance productivity. However, this could potentially lead to job displacement for educators and laborers.
“Despite the massive surge in AI’s adoption, the 30-day retention rates continue to significantly underperform compared to other major app categories.”
