The State of

AI Apps
An Analysis of AI Mobile App and Digital Advertising Trends.
 © 2022 Sensor Tower Inc. - All Rights Reserved

Introduction
This report, which leverages Sensor Tower’s Store Intelligence and Usage
Intelligence data, as well as our Pathmatics data, explores the AI-powered app
in worldwide.
The analysis includes:
- AI-powered app download and revenue trends from Jan. 2023 through Jul. 2023.
- Demographic data for selected AI-powered apps.
- Retention, session, and time spent data for selected AI-powered apps.

The AI-powered apps are broken down into five main sub-categories:

- Photo/Video Editor Apps: These apps utilize artificial intelligence (AI) to enhance
and manipulate photos and videos. They often offer features like automatic
image enhancement, background removal, and content recognition.
- Chatbot Apps: These apps employ AI to simulate human-like conversations.
They can assist users, answer questions, provide information, and engage in
interactive dialogues.
- Art Generator Apps: These apps harness AI to create artistic content. They can
generate images, paintings, and other creative works based on user input.
- Education Apps: These apps leverage AI to offer diverse learning experiences,
personalized guidance, and educational support.
- Writing Apps: These apps assist users in generating written content. They offer
grammar and style suggestions, auto-completion, and even full text generation.

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 Photo/video editor Monthly active users Downloads Revenue

apps dominate top 1 Picsart AI Photo Editor, Video 1 Picsart AI Photo Editor, Video
1 Facetune AI Photo/Video Editor

AI-powered app
PicsArt, Inc. PicsArt, Inc. Lightricks Ltd.

B612 AI Photo&Video Editor Remini - AI Photo Enhancer Picsart AI Photo Editor, Video
rankings 2
SNOW Corporation
2 BigWinePot Inc
2 PicsArt, Inc.

Top AI Apps by Downloads/ Microsoft Edge: Web Browser Microsoft Edge: Web Browser Remini - AI Photo Enhancer
3 3 Microsoft Corporation
3 BigWinePot Inc
Revenue/ Monthly Active Users, Microsoft Corporation

Worldwide, App Store and Google

Remini - AI Photo Enhancer PhotoRoom AI Photo Editor Meitu- Photo Editor & AI Art
Play, H1 2023 4 4 4
BigWinePot Inc PhotoRoom Background Editor App Xiamen Meitu Technology Co., Ltd.

Meitu- Photo Editor & AI Art Chat with Ask AI BeautyPlus - Retouch, Filters
5 5 Codeway Dijital Hizmetler Anonim Sirketi
5 PIXOCIAL TECHNOLOGY PTE. LTD.
Xiamen Meitu Technology Co., Ltd.

Facemoji:Emoji Keyboard&ASK AI Bing: Chat with AI & GPT-4 AirBrush - AI Photo Editor
6 EKATOX APPS
6 Microsoft Corporation
6 PIXOCIAL TECHNOLOGY (SINGAPORE)
PTE. LTD.

BeautyPlus - Retouch, Filters Facemoji:Emoji Keyboard&ASK AI Grammarly - Keyboard & Editor

7 PIXOCIAL TECHNOLOGY (SINGAPORE)
7 EKATOX APPS 7 Grammarly, Inc
PTE. LTD.

Subcategory EPIK - AI Photo Editor AI Chatbot: Ask Open Chat Lensa AI: photo editor, video
8 SNOW Corporation
8 Smart Widget Labs Co Ltd 8 Prisma labs, inc.

Photo/Video Editor Chatbot Chat with Ask AI EPIK - AI Photo Editor Videoleap: AI Video Editor
9 Codeway Dijital Hizmetler Anonim Sirketi
9 SNOW Corporation 9 Lightricks Ltd.

Search Engine Writing

SNOW - AI Profile Meitu- Photo Editor & AI Art Chat with Ask AI
10 10 Xiamen Meitu Technology Co., Ltd. 10 Codeway Dijital Hizmetler Anonim Sirketi
Other SNOW Corporation

3 | © 2023 Sensor Tower Inc. - All Rights Reserved

 Downloads Revenues
ChatGPT, a newly Monthly active users

released App, achieved Facetune AI Photo/Video Editor

Photo/video editor
1 Picsart AI Photo Editor, Video 1 Picsart AI Photo Editor, Video 1
PicsArt, Inc. Lightricks Ltd.
PicsArt, Inc.

a position in the top B612 AI Photo&Video Editor 2 Remini - AI Photo Enhancer 2 Picsart AI Photo Editor, Video
2
chatbot apps in H1 2023 SNOW Corporation BigWinePot Inc PicsArt, Inc.

Remini - AI Photo Enhancer PhotoRoom AI Photo Editor Remini - AI Photo Enhancer

3 3 3 BigWinePot Inc
Top Ai Apps by Downloads/ Revenues/ BigWinePot Inc PhotoRoom Background Editor App

Monthly Active Users, Worldwide, App

Store and Google Play), H1 2023
Monthly active users Downloads Revenues

Chat with Ask AI 1 Chat with Ask AI 1 Chat with Ask AI

1 Codeway Dijital Hizmetler Anonim Codeway Dijital Hizmetler Anonim
Codeway Dijital Hizmetler Anonim
Sirketi Sirketi Sirketi

Chatbot
ChatGPT AI Chatbot: Ask Open Chat ChatOn - AI Chat Bot Assistant
2 2 2 AIBY
OpenAI Smart Widget Labs Co Ltd

AI Chatbot: Ask Open Chat ChatGPT AI Chatbot: Ask Open Chat

3 3 3 Smart Widget Labs Co Ltd
Smart Widget Labs Co Ltd OpenAI

Monthly active users Downloads Revenues

Wonder - AI Art Generator 1 Wonder - AI Art Generator 1 Wonder - AI Art Generator

1
Art generator

Codeway Dijital Hizmetler Anonim Codeway Dijital Hizmetler Anonim Codeway Dijital Hizmetler Anonim
Sirketi Sirketi Sirketi

Dawn AI - Avatar generator Imagine : AI Art Generator Dawn AI - Avatar generator

2 2 2 Splice Video Editor
Splice Video Editor Vyro AI

AI ARTA: Art & Photo Generator AI ARTA: Art & Photo Generator AI ARTA: Art & Photo Generator
3 3 3 AIBY
AIBY AIBY

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 AI, a rising trend in advertising and the mobile app market Note: AI terms include “AI”, “artificial intelligence,” and “OpenAI”

Mobile Apps are Riding the AI Hype Wave Advertisers Capitalize on AI Terms to Pique Audience's interest
Number of apps adding AI terms to description, Semiannual Social Ad Spending on AI-Related Creatives semiannually

Google Play App Store Facebook Instagram Twitter

2500 $60M

$50M
2000 $11M

797 $40M
$9M $9M
1500

$30M $6M

1000
$5M
314 $20M
305 268 $4M $5M
259 $2M $32M
1263 $2M
$4M $26M
500
$10M
695 $15M
592 575 569 $13M $11M

0 $0
H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023

5 | © 2023 Sensor Tower Inc. - All Rights Reserved

 AI chatbot apps surge in popularity Download Trends for AI App Sub-Categories
80M
Monthly downloads and revenue by sub-categories for Top 30 AI Apps, Photo/Video Editor
Worldwide, App Store and Google Play 69M

57M

Photo/Video Editor AI apps, are a dominant force in the AI-powered app 46M
space, consistently maintaining their position as the most downloaded and Chatbot
highest revenue-generating category. With the rise of social apps and short- 34M
form video apps, consumers are increasingly seeking ways to enhance their
23M
visual content, making these AI-powered editing apps indispensable. In July,
while other AI subcategories' downloads and revenue stabilized, the top 11M Art Generator
Photo/Video Editor apps saw a 25% increase in downloads and a 19% rise in Education
0M Writing
revenue MoM.
Jan. 2023 Feb. 2023 Mar. 2023 Apr. 2023 May 22023 Jun. 2023 Jul. 2023

The Chatbot category has witnessed remarkable growth in downloads and

revenue, as well, driven by new AI chatbot apps like ChatGPT and Character Revenue Trends for AI App Sub-Categories
AI - Chat Ask Create, both released in Q2 2023. ChatGPT was the third most
$5.0B
downloaded app in the App Store in June 2023, the first month after its Photo/Video Editor
release. Meanwhile, Character AI - Chat Ask Create has shown consistent MoM $4.5B
growth. In July 2023, ChatGPT and Character AI - Chat Ask Create secured the $4.0B
top 2 positions by downloads among the top 30 AI chatbot apps, and
$3.5B
collectively accounted for a 37% download share.
Chatbot
$2.0B
Top 30 AI Chatbot’s Download Share $1.5B
July 2023, Worldwide, App Store and Google Play
$1.0B
Art Generator
$500M
ChatGPT Character AI - Chat Ask Create Other Writing
$0 Education
28% 9% 63%
Jan. 2023 Feb. 2023 Mar. 2023 Apr. 2023 May 2023 Jun. 2023 Jul. 2023
0% 20% 40% 60% 80% 100%

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 Majority of AI app revenue Download Shares by Regions Revenue Shares by Regions
is generated in U.S. H1 2023 H1 2023

Downloads and revenue for top apps by region, H1 2023, Worldwide,

App Store and Google Play US Other
Other 10% 15%
24%
Asia took the lead in adopting AI Photo/Video Editor apps, contributing US
more than half of the share of downloads in H1 2023. The region's Top AI Photo/ Europe
Video Editor 43%
consistent performance, maintaining over 30M monthly downloads 17%
for the past four months, emphasizes the enduring appeal of AI editing Apps Europe
14% Asia
tools. Notably, despite contributing only 10% of downloads, the U.S.
52% Asia
generated a substantial $10.6B in revenue, indicating a strong
willingness among U.S. users to invest in premium features within 25%
AI photo/video editor apps.

AI-chatbot apps have performed well in generating revenue in the U.S.

While revenue in Europe and Asia has experienced relatively slow growth
in the past three months, revenue from the U.S. grew quickly and reached Other
$1.05B in July 2023. US
Other 21% 17%
31%
Top 30 AI Chatbot Apps’ Revenue
App Store and Google Play Top AI Chatbot US
Europe
Apps 52%
Asia 20%
$1.2B US
$900M 24%
Europe Asia
$600M Europe 24% 10%
$300M Asia
$0
Jan. 2023 Feb. 2023 Mar. 2023 Apr. 2023 May 22023 Jun. 2023 Jul. 2023

7 | © 2023 Sensor Tower Inc. - All Rights Reserved

 No.1 chatbot app, Chat with Ask AI, organic % paid % browser %

heavily relying on paid downloads

Distribution of app downloads by source, Q2 2023, Worldwide,
App Store and Google Play

Chat AI - AI Chatbot Assistant stands out with its robust user-driven interest Chat AI -
and positive word-of-mouth. The app has achieved an impressive organic AI Chatbot 79% 12% 9%
Assistant
download percentage of nearly 80%, demonstrating a strong, sustainable
growth trajectory. Among other top chatbot apps, the reliance on organic
downloads for more than half of their overall download acquisition is a
AI Chatbot:
common trend. However, Chat with Ask AI stands out as an exception. 63% 14% 24%
Ask Open Chat
The app strikes a balance between organic (46%) and paid (44%) sources,
showcasing a diversified approach to user acquisition.

More than one-fifth of the downloads for the top AI chatbot apps come AI Chatbot -
58% 16% 25%
from the U.S.. Chat with Ask AI effectively acquired new users through Nova
paid sources, and its paid downloads peaked in April 2023, potentially
attributed to increased ad investment on YouTube. In the U.S., its average
Share of Voice (SOV) on YouTube increased from 0.08% in March to 0.21% Genie -
in April. In contrast, other competitors either had no presence or 55% 32% 13%
AI Chatbot
demonstrated less than 0.01% SOV on this platform.

While Chat with Ask AI’s current strategy is yielding results as the no. 1 AI
chatbot app in downloads in H1 2023, it is worth considering that their Chat with
46% 44% 10%
Ask AI
heavy reliance on paid downloads could pose a challenge in the long term.
If their advertising investment decreases, gaining new users will likely
become more difficult, demonstrating the importance of a sustainable 0% 20% 40% 60% 80% 100%
user acquisition strategy.

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 Character AI leads the way in
retention among AI chatbots 60%

Q2 2023 retention for top chatbot apps, Q2 2023, Worldwide, App Store

Character AI - Chat Ask Create and Chai - Chat with AI bots, as well as 50%
ChatGPT have managed to maintain user engagement and interest to a
greater degree than their competitors. These apps consistently outperform
the average 30-day retention rate of the top 10 AI chatbot apps.
40%
Among top AI chatbot apps, Character AI - Chat Ask Create stands out
with the highest Day 1 retention rate (58.2%), indicating a strong initial Character AI - Chat Ask Create
user appeal. Its retention rate gradually declines over the subsequent days,
but it still retains an impressive 33% of users after 30 days. Additionally, 30%
Chai - Chat with AI bots, another AI companion chatbot app, also manages
to retain more than 10% of users after 30 days.

Character AI and Chai’s high retention may stem from their unique approach 20%
of enabling users to craft personalized AI characters, foster emotional
connections, and generate an overall sense of ownership of the experience.
This emphasis on user-driven creativity likely underlies its sustained Chai - Chat with AI bots
ChatGPT
engagement, showcasing the impact of personalization in chatbot apps' 10%
long-term user retention.
Average of top apps

0%

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Da

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9 | © 2023 Sensor Tower Inc. - All Rights Reserved
 AI chatbot apps focused on AI Companions Chatbot Avg of select productivity AI chatbots

companionship excel in engaging

users through interaction
User engagement, Q2 2023 , Worldwide, Google Play
Average Sessions Count per Week Average Time Spent per Week (minutes)

120 400
AI Companion Chatbot Apps excel not only in retention rates but also in user
engagement metrics such as session counts and time spent. Character AI
leads with captivating consistency, boasting 373 minutes per week, on
average, while users of the the second-ranking app, Chai, spend 130 minutes
a week, on average. Even the AI companions chatbot app with the lowest 90 300
session count, Replika: My AI Friend (Replika), still boasts a substantial 45

Avg Sessions per week

minutes per week, notably surpassing the average of 9 minutes per week

Avg Minutes per week

observed among productivity AI chatbot apps.

Additionally, these three AI companion chatbot apps exhibit deeper 60 200

111 373
engagement in terms of sessions per week, with Replika at the lowest
average of 14 sessions per week, exceeding the average 5 sessions for
productivity AI chatbot apps.
65
30 100
AI companion chatbot apps such as Character AI and Chai distinguish
themselves by their outstanding user engagement, setting them apart 130
from conventional productivity-focused AI chatbot tools. This suggests
that incorporating features that cultivate more emotional connections and 14 45
personal interactive features into AI chatbots could potentially boost user 5 9
0 0
engagement.

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 AI integration boosted gaming Note: AI terms include “AI,” “AI-powered,”
“artificial intelligence,” and “OpenAI”
Google Play App Store

and productivity app downloads Education

Downloads growth following the addition of AI terms to app description, 500K
U.S., App Store and Google Play 400K -11%
300K
A substantial number of mobile apps have added AI-related keywords to 200K
their app descriptions across a variety of categories, aimed at generating 100K
higher interest. This trend has been particularly pronounced in categories 0
such as Education, Gaming, and Productivity.
Game
In the first half of 2023, the integration of AI terms into mobile game 500K
descriptions led to a 17% surge in downloads within two weeks following
400K
implementation. Similarly, Productivity apps also saw a 13% rise in

Downloads
300K 17 %
downloads. In contrast, Education apps with a specific purpose, such as
learning or skill enhancement, might not be as closely tied to AI-driven 200K
features and failed to boost downloads by incorporating AI. These trends 100K
highlight the positive impact of promoting AI related features in Gaming and 0
Productivity apps and suggest that these categories may be promising areas
of future AI-powered app revenue and download growth. Productivity
500K
Number of Apps Adding Ai Terms to Description
H1 2023 400K
Google Play App Store 300K 13 %
300
200K
250
200 32 100K
90
150 0
88 63 58
100 186 2 weeks before 2 weeks after
50 129
79 82 83 adding Ai terms in description adding Ai terms in description
0
Education Game Productivity Photography/ Social
Photo & Video

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 © 2022 Sensor Tower Inc. - All Rights Reserved

Conclusion: key takeaways

• Photo/Video Editor AI apps lead as the most downloaded and revenue-generating
sub-category within AI apps, with their consistent appeal aligning with the popular
trend of social and short-form video. Meanwhile, the Chatbot category has seen
remarkable expansion, driven by emerging players like ChatGPT and Character.
AI - Chat Ask Create, with both securing top positions and collectively accounting.
for 37% of download share among top AI chatbot apps.

• The U.S. is a key revenue contributor within the AI-powered app landscape.
While Asian markets lead in AI Photo/Video Editor app adoption, the U.S. excels
with $10.6B in revenue from its 10% download share. Moreover, in AI Chatbot apps,
the U.S. remains a significant player, contributing 52% of total revenue. Balancing
these trends offers publishers opportunities in both American and Asian markets.

• AI Chatbot Apps like Character AI and Chai excel in engaging users through interactive
companionship. Notably, Character AI maintains an impressive retention rate of over
30 percent after 30 days. Users of these AI companion apps also show remarkable
session frequency and duration, outperforming productivity-focused chatbot apps.
This underlines the potential for enhancing user engagement by integrating
emotional connections and personalized interactive features into AI chatbots.

• Over the past two years, we have witnessed an increasing adoption of AI-generated
features in mobile apps. A substantial number of apps across multiple categories
have begun to promote AI related features in their descriptions. In the first half of
2023, this approach resulted in a remarkable 17% surge in Gaming app downloads
and a 13% increase in Productivity app installations within two weeks of
implementation.

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