TL;DR:
- ChatGPT continues to lead in downloads and revenue among AI chatbots.
- Despite its popularity, it’s not the top revenue-generating AI app.
- The AI chatbot market sees stiff competition, with multiple apps surpassing 2 million downloads.
- Character.ai, an a16z-backed startup, is making its mark with significant downloads.
- AI photo apps, while adjacent to ChatGPT, pose substantial competition.
- Some AI photo apps have outperformed ChatGPT in downloads, usage, and in-app purchases.
- ChatGPT’s revenue generation is impacted by its premium web-based subscription.
- The longevity of AI photo apps may be shorter-lived compared to ChatGPT.
Main AI News:
ChatGPT, the remarkable AI-powered chatbot created by OpenAI, has maintained its lead among AI chatbot apps for mobile devices, boasting the highest number of downloads and robust revenue. Yet, interestingly, it doesn’t hold the top spot in terms of revenue, with several photo AI apps and other AI chatbots outperforming ChatGPT in the earnings department, despite the latter’s widespread recognition for delivering exceptional AI chat experiences.
Since its debut on mobile devices in May of this year, ChatGPT has witnessed consistent growth in both downloads and revenue. In its maiden month, when it was exclusively available on iOS, it garnered a remarkable 3.9 million downloads, which surged to 15.1 million by June, according to an in-depth analysis of the AI app market conducted by Apptopia. After a slight dip in July, ChatGPT rebounded impressively, surpassing 23 million downloads by September 2023.
Furthermore, the user base of ChatGPT on mobile devices has experienced exponential growth, escalating from slightly over 1.34 million monthly active users in May to an impressive 38.88 million as of September.
More significantly, ChatGPT’s mobile app has established itself as a frontrunner in consumer spending within the AI chatbot market. The app’s revenue soared from $352,929 during its launch month to an impressive $1.98 million as of September, reaching nearly $2.39 million as of October 24, the endpoint of our current dataset.
Nevertheless, ChatGPT does not hold the top revenue-generating position in the AI chatbot sector. “Chat & Ask AI” and “ChatOn — AI Chat Bot Assistant” outperformed ChatGPT in revenue generation, raking in nearly $3.38 million and $2.11 million, respectively, in September. Other apps such as “AI Chatbot — Nova” and “AI Chatbot: AI Chat Smith” also made substantial earnings, generating almost $1.44 million and $1.72 million in revenue in September, respectively.
In a fiercely competitive landscape for users’ attention on mobile devices, there are now at least five AI chatbot apps that have crossed the 2 million download mark in September. These apps, with names like “Chat & Ask AI,” “ChatOn — AI Chat Bot Assistant,” “AI Chatbot — Nova,” and “AI Chatbot: AI Chat Smith,” garnered 2.44 million, 2.02 million, 3.1 million, and 2.9 million downloads, respectively. These apps seem to have mastered the art of App Store SEO, effectively ranking for terms like “AI Chat” and similar queries. Although still trailing ChatGPT’s 23 million downloads from the previous month, this trend highlights the continued demand for AI apps beyond OpenAI’s flagship product.
In addition, Character.ai, a chatbot startup backed by a16z that enables users to interact with and create their own AI personas, gained significant traction with 2.39 million downloads as of September.
Furthermore, several AI chatbot apps boast an active user base. For instance, Poe, the chatbot app from the Q&A platform Quora, boasted over 1.18 million monthly active users (MAUs) as of September, in contrast to ChatGPT’s nearly 39 million users.
The success of these generic apps extends beyond mere download numbers; they also excel in retaining their user base. “Chat & Ask AI” boasted 9.7 million MAUs in September, “ChatOn — AI Chat Bot Assistant” had 3.5 million MAUs, followed by “Genie — AI Chatbot AI Assistant” (2.3 million), “AI Chat — Chatbot AI Assistant” (2.17 million), “AI Chatbot — Nova” (8.55 million), and “AI Chatbot: AI Chat Smith” (8.48 million). Character.ai also recorded an impressive 5.92 million monthly active users during that month.
Moreover, there’s a vibrant ecosystem of AI photo apps that utilize AI technologies for editing effects and personalized images. While operating in a related space to ChatGPT, some of these apps are giving the AI assistant a run for its money across various metrics, including downloads, usage, and in-app purchase revenue.
With 23 million downloads in September, ChatGPT remains the frontrunner, but viral apps like “Remini” have come close to matching ChatGPT’s installation numbers. For instance, “Remini” registered over 16.17 million downloads last month, several months after its AI headshots feature gained prominence on TikTok. “PicsArt AI Photo Editor” also had a successful September with nearly 16.05 million installations.
“Remini” also enjoyed the patronage of 6.2 million monthly users last month, while “FaceApp,” which includes AI filters, boasted more than 6.4 million users. Other apps, such as “PicsArt” (4.27 million MAUs), “Wonder — AI Art Generator” (4.77 million MAUs), and “Facetune AI Photo/Video Editor” (5.22 million MAUs), also experienced high usage.
Remarkably, several AI photo apps have been more successful in generating revenue through in-app purchases compared to ChatGPT. However, this could be attributed to various factors. ChatGPT also offers its premium ChatGPT Plus subscription via the web, where many users engage with the chatbot assistant. In contrast, AI photo apps primarily generate revenue through user interactions with photos stored on their smartphones. Furthermore, many apps achieve viral status, leading to a surge in revenue as users explore additional features and engage in ongoing subscriptions.
While ChatGPT generated $1.98 million in mobile consumer spending as of September 2023, apps like “Remini,” “PicsArt,” “Wonder,” “BeautyPlus — AI Photo/Video Edit,” “FaceApp,” and “Facetune: AI Photo/Video Editor” outperformed it, generating roughly $6.22 million, $4.27 million, $2.08 million, $4.78 million, $6.42 million, and $5.22 million, respectively.
However, the popularity of AI photo apps may be more short-lived compared to ChatGPT. For instance, Lensa, which went viral last year, garnered 23.44 million downloads in December 2002. Yet, it has seen a decline, with only 413,814 monthly installs as of September 2023 and 739,000 monthly active users, down from nearly 24.9 million in December. It also recorded $739,000 in mobile consumer spending last month, a drop from its peak of over $24 million, as per Apptopia’s research. These figures indicate a tendency among users to switch between viral AI photo apps over time, driven by the marketing and development of new features elsewhere.
Conclusion:
ChatGPT’s dominance in downloads and user base reflects its strong market position. However, the competition is fierce, with rival AI chatbots and photo apps making significant strides in revenue and user engagement. ChatGPT’s strategy of web-based premium subscriptions offers an alternative revenue stream, but the dynamic nature of the AI app market poses a challenge for long-term sustainability.
