India has emerged as the top market for AI mobile app adoption, contributing 21% to the global AI app downloads, which exceeded 2.2 billion in the first eight months of 2024, according to Sensor Tower. Popular apps include ChatGPT, Microsoft Copilot, Google Gemini, and various image/video editing tools. Despite this high download rate, most Indian users access these apps for free.
In contrast, North America and Europe dominate AI app revenue, contributing 68% of the total in-app purchase revenue. Globally, AI app revenue has surpassed $2 billion this year, with India’s contribution being less than 2%. Sensor Tower projects that global AI app revenue will reach $3.3 billion in 2024, marking a 51% year-on-year growth.
The surge in AI app downloads began in 2023, when downloads of AI and chatbot apps grew by 14 times to nearly 600 million. In 2024, downloads have already exceeded 630 million within the first eight months, surpassing the total for the previous year.
Among AI apps, OpenAI’s ChatGPT ranks first in global downloads, followed by the AI image editing app Remini. Photoroom AI Photo Editor and Google Gemini round out the top four.
Neil Shah, partner and cofounder of Counterpoint Research, noted that consumer chatbots are becoming increasingly popular for generative tasks like text, image, and video creation. He predicts that simple applications like transcription, language translation, and note-taking will see wider adoption in the near future. Shah also anticipates a shift towards an “app-less ecosystem” driven by advancements in Android and iOS operating systems, with AI agents capable of autonomously performing tasks such as booking restaurants or shopping.
To fully embrace AI’s potential, device manufacturers will need to enhance processors and memory storage. Currently, AI models require 4-5 GB of storage, and devices would need at least 12 GB RAM to handle AI applications effectively, Shah explained. He emphasized that chipsets with neural processing units (NPUs) from Qualcomm and MediaTek are already capable of supporting AI, but improvements in memory are essential for a seamless AI experience.
