Consumer spending goes up by greater than 4000% on AI-powered apps


Given the rising curiosity in generative AI instruments like text-based ChatGPT and image-based Midjourney, AI-powered apps are rising in numbers and recognition in each app shops.

A report by analytics agency Apptopia means that 158 AI Chatbot apps — with the outline having key phrases like “AI Chat” or “AI Chatbot” — hit the app shops within the first quarter of this 12 months. That’s a 1480% improve year-over-year, principally because of OpenAI publicly releasing ChatGPT API in March.

Picture Credit: Apptopia

The information means that a number of apps like Nova AI, Genie AI and Chat with Ask AI have damaged into prime charts in app shops — numerous these apps are equally named, so it’s straightforward to get confused between them. On the time of writing, Chat with Ask AI is on the highest 10 free apps record on iOS in a number of international locations.

Apptopia mentions within the report that builders are attempting to transform AI chatbot tech, which is well out there on an online browser, right into a native cell expertise and charging cash for it. More often than not these apps cost customers for unlocking limitless (or massive variety of) conversations with the chatbot.

The analytics agency famous that downloads for AI-powered apps have elevated by 1506% year-on-year, with the quantity reaching practically 20 million in March. The in-app spending has additionally elevated, clocking virtually $3 million in March — an enormous 4184% improve year-on-year.

Picture Credit: Apptopia

Information compiled by Bernstein and app analytics firm information.ai (previously App Annie) paints a extra rosy image. It says that person spending on the highest 10 GPT-3 powered AI apps reached $6 million in February 2023.

Whereas most of those apps use the identical base expertise, they try to create differentiation by serving to individuals with various prompts or by introducing a number of variations of bots with totally different skills or moods. As an illustration, Quora’s Poe allows users to interact with multiple chatbots powered by ChatGPT, GPT-4, Claude and more. All these bots have totally different personalities, so you may work together with them for various use circumstances. Earlier this week, the app launched a brand new function that lets users create their own bots just using prompts. Some early examples embody a pirate language bot, a bot that converts messages into emojis and a Japanese language tutor bot.

Other than indie builders, this new reputation wave of AI-powered apps has additionally benefited Microsoft. The corporate introduced the combination of OpenAI tech with Bing earlier this 12 months. Apptopia stated that since then, Bing’s common day by day downloads have elevated by 1000%. Whereas the search app bought into the App Retailer’s prime charts in February, the rank rapidly fell and the downloads nonetheless stay 1/10 of Google downloads, in response to information.ai.

Bernstein’s evaluation additionally suggests downloads for Microsoft’s Edge browser, which also integrated an AI chatbot powered by OpenAI tech, jumped 135% year-on-year in Q1 2023. The agency stated that the browser reached 1/3 of Chrome’s obtain volumes for this era.

Regardless of this rise in reputation, analysts at Bernstein are being cautious. They stated that it’s “too early to touch upon whether or not any of those pure-play AI-assistant apps have endurance.” This alerts that AI-powered chatbots are novel use, however the longevity of curiosity in them is but to be examined.

However this onslaught of AI apps additionally brings doubtful instruments to the app shops. Final week, China-based tech big Baidu sued Apple for permitting counterfeit apps of its Ernie bot on the App Store. Earlier this 12 months, many apps labeled “ChatGPT” flooded the App Retailer and the Play Retailer at a time when OpenAI hadn’t launched an official API.



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