The anticipated collapse of the AI bubble is not evident yet, especially regarding consumer expenditure on AI applications.
Thanks to OpenAI’s ChatGPT, total investment in AI applications soared to $1.42 billion in 2024, as reported by app analytics company Appfigures. This represents an astonishing 274% surge compared to 2023, the year when the app debuted in May. Among a plethora of competing applications—many utilizing OpenAI’s technology—ChatGPT has established itself as a juggernaut, consistently outperforming other top AI assistant applications in revenue generation.
The triumph of these applications significantly benefits platforms like Apple and Google, which pocket around 30% of earnings from in-app purchases. Collectively, mobile AI apps contribute to a market value of $2 billion, as noted by Appfigures.
ChatGPT has achieved 353 million downloads to date, but its user demographics reveal an interesting skew. More than half of its mobile users are under 25 years old, suggesting that younger audiences are more inclined to experiment with new technologies—or perhaps they’re just seeking assistance with their studies. According to the Pew Research Center, approximately 25% of U.S. teenagers have utilized ChatGPT for schoolwork, a figure that has doubled since 2023.
Interestingly, users aged 50 to 64 constitute the second-largest demographic, comprising 20.2% of the total user base.
The gender disparity among ChatGPT users is particularly pronounced. Appfigures estimates that men account for 84.5% of the total users across various age groups.
While women hold vital positions in the AI sector, a Pew report from 2022 highlights that women generally exhibit greater skepticism regarding AI than their male counterparts. An Axios poll revealed that 53% of women surveyed would prohibit their children from using AI, compared to just 26% of men. Additionally, McKinsey projects that women may be more susceptible to job losses due to automation than men, which could further fuel resistance in this demographic.
Women might also be less supportive of the widespread adoption of consumer AI technologies, as they are particularly at risk from some of the more harmful consequences of this technology, such as sexually explicit deepfake images.
While ChatGPT continues to capture a significant share of AI application spending, it may face some challenges ahead with the arrival of DeepSeek, a free and open-source alternative. DeepSeek has already surpassed OpenAI’s app to become the leading app in the App Store, but sustaining its current momentum may prove to be a daunting task for the Chinese AI platform.
Compiled by Techarena.au.
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