SensorTower: AI Application Report 2023

199IT original compilation

Apps that tout AI-related features exploded in 2023, and those that allow users to edit photos and videos did better. Among apps that prominently advertise AI features, AI photo and video editing apps topped the revenue, downloads, and monthly active users charts. Seven of the top 10 AI apps by monthly active users are photo and video editing apps. Driven by the popularity of social media platforms like Instagram and TikTok, these apps allow users to generate complex video and image effects that were previously only seen in high-budget productions. Demand for these types of AI apps is significant and growing, with 69 million downloads in July 2023 alone.

Along with AI-powered photo and video apps, another type of AI application is growing in popularity: chatbot apps that serve as human-like conversational partners. These apps are a unique subcategory of typical chatbot apps because they allow for long-term, ongoing relationships with the chatbot, including personality, preferences, and an uncanny ability to reason about complex social and cultural issues. While these apps haven’t reached the same levels of monthly active users and downloads as photo and video apps, their long-term growth prospects are very promising. For example, the popular chatbot app Character AI has a very high user retention rate, with nearly 60% of users opening the app on the day of installation, and 33% of users still using the app 29 days later.

As the landscape of AI-driven applications takes shape, it’s important to stay up to date on what works and what doesn’t. The decision to invest in AI capabilities should not be taken lightly, it requires significant resources and will ultimately impact the app’s monetization strategy.

199IT.com Originally compiled from: SensorTower. Please do not reprint without authorization