The AI Bubble Hasn’t Bursted Yet
AI App Spending on the Rise
Led by OpenAI’s ChatGPT, overall spending on AI apps jumped to $1.42 billion in 2024, according to app analytics firm Appfigures. This marks a 274% increase from 2023, the year the app was launched. Among tens of thousands of competitor apps, ChatGPT is so dominant that it has consistently earned more than the aggregate revenue of other top AI assistant apps.
Revenue and Demographics
The success of these apps is also a boon for Apple and Google, which retain about 30% of revenue from in-app purchases. Overall, mobile AI apps constitute a $2 billion market, according to Appfigures. ChatGPT has been downloaded 353 million times to date, but the demographics that use the app are skewed. Over half of ChatGPT’s mobile users are under the age of 25, indicating that perhaps young people are more open to experimenting with new technology or may be using the app for homework, as the Pew Research Center estimates that a quarter of U.S. teens have used ChatGPT for schoolwork, which has doubled from 2023.
Age and Gender Demographics
However, users between the ages of 50 and 64 make up the second-largest age demographic, with 20.2% of users. The gender gap among ChatGPT users is even more significant, with Appfigures estimating that across age groups, men make up 84.5% of all users.
The Gender Gap and AI
Women hold prominent roles in the AI industry, but a Pew report from 2022 indicates that women tend to be more skeptical about AI than men. An Axios poll found that 53% of women surveyed would not allow their children to use AI at all, compared to 26% of men. Meanwhile, McKinsey estimates that women will be more likely to lose their jobs to automation than their male counterparts, which could drive further resistance. Women may also be less enthusiastic about the mass adoption of consumer AI products because they are particularly vulnerable to the most sinister impacts of this technology, such as sexually explicit deepfake images.
Competition in the AI App Market
ChatGPT is solidly winning the lion’s share of AI app spending, but with DeepSeek coming on the market as a free, open-source alternative, the OpenAI app may see slight headwinds. DeepSeek has already dethroned OpenAI as the top app in the App Store, but maintaining its current level of hype could be a challenge for the Chinese AI app.
Conclusion
The AI bubble has not burst yet, and consumer spending on AI apps continues to grow. While there are concerns about the potential implications of AI on society, the data suggests that consumers are enthusiastic about the technology. As the market continues to evolve, it will be important to consider the potential consequences of AI adoption and to ensure that the benefits of this technology are accessible to all.
FAQs
Q: What is the current state of AI app spending?
A: According to Appfigures, overall spending on AI apps jumped to $1.42 billion in 2024, a 274% increase from 2023.
Q: What is the demographic breakdown of ChatGPT users?
A: Over half of ChatGPT’s mobile users are under the age of 25, and 20.2% are between the ages of 50 and 64. Men make up 84.5% of all users.
Q: What is the gender gap in AI adoption?
A: Women tend to be more skeptical about AI than men, with 53% of women surveyed saying they would not allow their children to use AI at all, compared to 26% of men.
Q: What is the potential impact of AI on the workforce?
A: McKinsey estimates that women will be more likely to lose their jobs to automation than their male counterparts, which could drive further resistance to AI adoption.
