AI News

Generative AI Apps Rake In Nearly $2 Billion as Use Goes Mainstream: Sensor Tower Report

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Key Points

  • Generative AI apps nearly double revenue to $1.9 billion and reach 1.7 billion downloads in the first half of 2025, signaling mainstream adoption.
  • OpenAI's ChatGPT sees increased personal use, with engagement levels now comparable to social platforms like X and Reddit.
  • Asia drives an 80% surge in downloads, accounting for over 42% of the global total, while North America holds 40% of revenue.
  • Sensor Tower warns that apps must develop tailored AI features to remain competitive, as the term "AI" alone is not a sustainable strategy.

Generative AI apps nearly doubled their revenue to almost $1.9 billion and soared to 1.7 billion downloads in the first half of 2025, cementing their shift from niche tools to mainstream consumer staples, according to a new report from market intelligence firm Sensor Tower.

  • More than a workhorse: OpenAI’s ChatGPT continues to dominate the market, with user engagement now rivaling social platforms like X and Reddit. The app has broken out of its 9-to-5 mold, as a rise in weekend activity shows it’s being used for personal life tasks, not just work. The report notes this makes its usage "more akin to Google’s," with daily time spent in ChatGPT creeping up on the average for top search apps.
  • A tale of two markets: The growth story has two distinct sides. While North America still commands 40% of the revenue, Asia is the engine for growth, driving a massive 80% surge in downloads in the first half of the year and accounting for over 42% of the global total.
  • Adapt or become obsolete: The AI gold rush is reshaping the entire app ecosystem, with the term "AI" now appearing in over 100,000 app store listings. But Sensor Tower warns that slapping "AI" on an app for a temporary download boost isn't a long-term strategy. Apps in categories like nutrition and education must now build their own tailored AI features that outperform general chatbots or risk being replaced entirely.

The explosive growth in revenue and daily use makes it clear: GenAI apps are no longer an experiment. They are becoming essential digital utilities, and the battle for market share is only just beginning.