The cellular app panorama is continually shifting, however few developments have been as transformative because the rise of generative AI. Based on the newest information from Sensor Tower’s “State of AI Apps 2025” information, the primary half of 2025 has cemented generative AI’s place as a dominant power, not simply as a novelty however as an integral a part of customers’ every day digital routines.
Within the first half of 2025 (H1 2025), cellular customers worldwide spent over 15 billion hours on generative AI apps. This staggering determine equates to greater than 86 million hours per day, displaying how deeply these apps have woven themselves into the material of cellular utilization.
The overall variety of classes for these apps reached 426 billion in H1 2025, a median of about 50 classes for each particular person on Earth. This explosive development presents a large alternative for app builders and entrepreneurs, however to succeed, you want to perceive the important thing developments driving this market.
Generative AI’s Speedy Rise in 2025
The expansion of generative AI apps has been nothing wanting phenomenal. International downloads for generative AI apps, together with AI Assistants and AI Content material Mills, neared 1.7 billion in H1 2025.
Over the identical interval, in-app buy (IAP) income reached practically $1.9 billion. Each downloads and IAP income confirmed sturdy half-over-half (HoH) development, with downloads climbing 67% and IAP income greater than doubling in comparison with the second half of 2024 (H2 2024).
This development is pushed by two key subgenres:
AI Assistants and AI Content material Mills. Whereas AI Content material Mills initially accounted for almost all of downloads following the launch of ChatGPT in late 2022, AI Assistants have since propelled the style to new heights. By the second quarter of 2025 (Q2 2025), AI Assistants like ChatGPT, Google Gemini, and DeepSeek originated 85% of downloads between the 2 subgenres. A major development noticed by Sensor Tower is the blurring of traces between these classes, as high AI Assistants now promote their picture era capabilities, increasing their utility and enchantment.
A Story of Two Markets: Asia’s Adoption vs. North America’s Income
Whereas generative AI is a worldwide phenomenon, its development story is distinctly regional. The report highlights an enchanting dynamic between two of the world’s largest cellular markets: Asia and North America.
Asia’s Dominance in Downloads
Asia has solidified its place as the highest marketplace for generative AI downloads. The area’s downloads climbed by a outstanding 80% between H2 2024 and H1 2025, with main contributions from markets like India and Mainland China.
This development considerably outpaced the 51% development in Europe and the 39% development in North America throughout the identical interval. Preliminary adoption of generative AI apps was led by English-speaking markets, significantly the USA, which accounted for roughly 20% of the market share following ChatGPT’s launch.
Nevertheless, because the know-how has gained world traction, North America’s obtain share has declined to 11% in H1 2025, whilst downloads proceed to develop within the area. This underscores a important level for world app entrepreneurs: whereas the U.S. stays an essential market, the explosive development in rising markets, significantly throughout Asia, is reshaping the worldwide distribution of customers.
North America’s Management in Income
Regardless of the shift in downloads, North America stays the undisputed chief in generative AI app IAP income. The area’s IAP income for generative AI apps climbed to
$752 million in H1 2025, main the best way with a 74% half-over-half development fee. ChatGPT continues to be the dominant participant, holding the highest spot for IAP income in each main market aside from Mainland China. In H1 2025, ChatGPT accounted for 63% of all generative AI app income.
Whereas North America holds the income crown, different areas are seeing sooner development. Latin America’s IAP income grew by 174% HoH, Asia by 138%, and the Center East by 137%. Europe additionally noticed a major improve, greater than doubling its IAP income with 121% development. This demonstrates the immense and rising income potential of generative AI apps on a worldwide scale.
Excessive-Worth Audiences and Shifting Consumer Habits
The Sensor Tower report additionally offers deep insights into who’s utilizing AI apps and the way their habits are evolving.
AI Customers Overlap with “Tech-Savvy” Personas
The report reveals that AI Assistants have a excessive overlap with “tech-savvy” personas comparable to Crypto Merchants, Frequent Automotive Renters, and Peer-to-Peer Payers. Apparently, different apps like PolyBuzz and Character.AI are extra well-liked with console avid gamers and “digital socialites”.
For instance, the probability of a Crypto Dealer utilizing a generative AI app is 1.88 instances increased than the final inhabitants, whereas a pupil is 1.52 instances extra seemingly. This perception is invaluable for entrepreneurs trying to goal essentially the most engaged and high-value customers.
Customers Are Getting Extra Comfy with AI
Customers are more and more turning to their favourite AI Assistants, and these apps have gotten integral to every day routines. The typical variety of days used per 30 days for high generative AI apps is rising, with ChatGPT, as an example, seeing constant utilization all through the primary half of 2025. Whereas Google stays the gold normal for constant cellular search utilization, ChatGPT has turn out to be “sticky” for its customers, with a median use of roughly 13 instances per 30 days. That is much like the utilization frequency of social media apps like X and Reddit, displaying that AI has earned its place in a person’s month-to-month app rotation.
A major signal of this broader adoption is ChatGPT’s shift in direction of elevated weekend utilization. Work-focused apps like Microsoft Groups and Slack sometimes expertise drops in utilization on each app and net throughout weekends, however ChatGPT’s utilization sample on cellular has turn out to be extra akin to Google’s. Customers depend on Google as a major search software each throughout and out of doors of labor hours, and ChatGPT’s cellular utilization is following an identical development, displaying it’s not only a weekday work software.
The Broader Affect: AI Spreads Throughout Verticals and Advertising
The affect of generative AI extends far past the AI app class itself, reshaping all the app ecosystem and influencing advertising methods throughout verticals.
AI Options Turn out to be a Should-Have
From 2015 to 2019, AI was principally confined to cellular video games, however that essentially shifted following ChatGPT’s launch. In H1 2025, apps mentioning AI of their names or descriptions had been downloaded 7.5 billion instances, constituting roughly 10% of all downloads throughout that interval. This represents a major 52% year-over-year improve. The AI-related phrases which have turn out to be most typical in app descriptions embrace “AI-powered” and “AI know-how,” together with extra particular phrases like “AI translator” and “AI character”.
This development is especially sturdy in sure subgenres. The variety of apps in Diet & Weight-reduction plan and Take a look at Prep, Tutoring, & Learning that added AI-related phrases grew by over 174% and 108% respectively from H2 2023 to H1 2024. For apps in these classes, AI options have gotten a must have to compete with general-purpose AI Assistants. For instance, AI-powered calorie scanners are actually seen as a aggressive characteristic for vitamin apps. Training apps, specifically, are including options like homework scanning and quiz creation to remain forward.
App Retailer Optimization & Digital Promoting
Including AI-related phrases to app names or descriptions offers a short-term enhance in downloads. The median downloads for apps that added the time period “AI” or “LLM” to their titles or descriptions climbed 2.9% within the month it was added. Whereas this uplift different, genres like Jobs & Training and Way of life & Companies maintained a constant improve all through the three months following the AI time period addition. Nevertheless, for some genres like Relationship & Social Discovery, including AI phrases appeared to backfire, seemingly reflecting person skepticism in direction of AI in private interactions.
AI can be remodeling digital promoting. The variety of distinctive advert creatives with AI-related phrases has elevated greater than tenfold since early 2023, signaling that that is removed from a passing fad. Within the U.S., digital advert spend for generative AI manufacturers surpassed $200 million in Q2 2025, greater than doubling the funding from Q2 2024. The first channels for this promoting are social media platforms like YouTube and LinkedIn, which collectively account for practically 70% of the digital advert spend.
The Street Forward for App Entrepreneurs
The info from Sensor Tower’s report is evident: AI is not a distinct segment characteristic. It’s a elementary shift in person conduct and app performance. For cellular entrepreneurs, the important thing takeaways are:
- Deal with Viewers Insights: Perceive your core persona. Should you’re concentrating on tech-savvy customers, lean into the options that resonate with them.
- Put money into Tailor-made AI Options: Merely mentioning “AI” isn’t a long-term technique. To keep up a aggressive edge, apps should develop AI options that remedy particular, nuanced issues for his or her viewers.
- Adapt Your ASO and Advert Technique: Use AI-related phrases strategically to seize natural development, however again it up with a powerful, data-driven promoting technique on the platforms the place your viewers is most engaged.
- Embrace the International Market: Whereas North America stays the income powerhouse, the fast adoption in Asia and different rising markets exhibits the place the following wave of customers will come from.
While you perceive these developments and proactively combine AI into your product and advertising methods, you may place your self for sustained development within the quickly evolving cellular ecosystem.
