User spending goes up by more than 4000% on AIpowered apps

News Summary

  • He said that the app now has more than 100,000 paid users and raked in $1.5 million in revenue last month.The analytics firm noted that downloads for AI-powered apps have increased by 1506% year-on-year, with the number reaching nearly 20 million in March.
  • Most of the time these apps charge users for unlocking unlimited (or large number of) conversations with the chatbot.Yalçın Özdemir, founder & CEO of AppNation, which makes Genie AI, told TechCrunch over an email that the app had over 2.5 million downloads in March.
  • Some early examples include a pirate language bot, a bot that converts messages into emojis and a Japanese language tutor bot.Apart from indie developers, this new popularity wave of AI-powered apps has also benefited Microsoft.
  • The in-app spending has also increased, clocking almost $3 million in March — a massive 4184% increase year-on-year.Image Credits: ApptopiaData compiled by Bernstein and app analytics company (formerly App Annie) paints a more rosy picture.
  • Earlier this year, many apps labeled “ChatGPT” flooded the App Store and the Play Store at a time when OpenAI hadn’t released an official API.
  • Last week, China-based tech giant Baidu sued Apple for allowing counterfeit apps of its Ernie bot on the App Store.
Given the rising interest in generative AI tools like textbased ChatGPT and imagebased Midjourney, AIpowered apps are growing in numbers and popularity in both app stores.A report by analytics f [+3433 chars]