The use of artificial intelligence technology is increasingly prevalent among developers, as they follow the trend to enhance their mobile apps and expand their user base. Recent data provided by Sensor Tower reveals a substantial rise in the number of productivity apps incorporating the term “AI” in their names.
More developers using AI
In 2020, a mere 3% of such apps embraced this technology, while in the first quarter of 2023, that figure surged significantly to reach 34%.
Consequently, the Play Store and App Store saw a notable surge in downloads and revenue for these AI-powered apps throughout the initial three months of this year. The revenue generated soared to an impressive $20 million, marking a remarkable growth of 396% compared to the preceding quarter.
Simultaneously, the number of installations experienced a substantial upswing, surpassing 45.8 million, which represents a remarkable increase of 378% compared to the previous quarter.
Throughout this period, the US emerged as the leading market for these apps, witnessing a substantial number of downloads and revenue. Impressively, they garnered nearly 10 million installs in the country, marking an impressive quarter-over-quarter growth of 550%. Moreover, these apps generated a remarkable revenue of $8.3 million.
Downloads by country
Source: Sensor Tower
In terms of downloads, India secured the second position, accounting for 6% of the total downloads, followed by Brazil with 5%. Regarding gross revenue, the UK ranked second with $958K (5%), closely followed by China with $882K (5%), Japan with $836K (4%), and Canada with $702K (4%) respectively.
Chatbots come out top for downloads
The latest report also provided insights into the most popular AI-powered Android and iOS apps that experienced the highest number of downloads and revenue during the initial quarter of 2023. Leading the charts in both categories was the app “AI Chatbot” developed by Vulcan Labs, which amassed an impressive 9.5 million downloads and generated $3.3 million in gross revenue.
In terms of downloads, Microsoft’s newly introduced AI-powered Bing app claimed the second spot of the quarter, accumulating 7.3 million new installations. Following closely were “Genie – AI Chatbot” by AppNation, “AI Chat – Chatbot AI Assistant” by Social Media Apps, and “ELSA: AI Learn” by ELSA, securing the third, fourth, and fifth positions, respectively.
Top apps by downloads and revenue
Source: Sensor Tower
The introduction of ChatGPT’s iOS app is anticipated to intensify the competition in the mobile market, according to Sensor Tower. With this new addition.
Key takeaways
- Productivity apps with “AI” in their names increased from 3% (2020) to 34% (Q1 2023)
- AI-powered apps witnessed a 396% revenue growth ($20M) and 378% installation increase (45.8M)
- “AI Chatbot” by Vulcan Labs tops charts with 9.5M downloads and $3.3M in gross revenue
