The mobile universe is evolving fast. With the growing integration of Generative AI into both devices and apps, we’re already seeing significant changes. That’s the main takeaway from the latest industry research: the State of Mobile 2025 report by Sensor Tower.
What’s clear is that AI will define the future of the mobile market—just as it’s doing in many other sectors. In this article, we highlight four key insights from the report to help you understand today’s mobile landscape and prepare for what’s coming.
#1 – The Rise of AI in Mobile
As in other industries, Generative AI is reshaping the mobile space. One clear sign is the explosive growth in downloads of AI-powered chatbot apps like ChatGPT, Gemini, and Copilot.
In 2024 alone, there were nearly 1.5 billion downloads of these apps globally. But the impact goes beyond downloads—they also surpassed the $1 billion mark in revenue last year and became the third most-used app category worldwide, behind only social media and messaging platforms.
It’s worth noting: in 2024, people spent more time on AI apps than they did making phone calls.
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#2 – Innovation with AI Is No Longer Optional
As AI adoption accelerates, many apps are focusing on embedding it into their core services. According to the report, users notice—and value—AI features when they’re well-executed.
On the flip side, poorly implemented AI can backfire and drive negative user perception.
A good example of success is Duolingo’s AI-powered video call feature, which helped the company hit record revenue last year. The takeaway? AI needs to be part of a thoughtful strategy, not just a trendy add-on.
Wondering how AI could actually benefit your business? Talk to our experts and learn how to build a smart, results-driven AI solution.
#3 – App Downloads Continue to Decline
For the fourth year in a row, total app downloads have declined—this time by just 1% year-over-year. While the drop may seem small, the trend is what matters.
Several factors may explain this shift:
- Superapps are consolidating features into single platforms. WeChat, for example, lets users send messages, book flights, and more—all within the same app.
- The rise of AI-first devices like the AIPin or Meta’s smart glasses is also pushing us toward a future that’s less dependent on screens. With AI agents, many commands can be carried out by voice, no app icons required.
#4 – But Revenue Keeps Growing
From 2014 to 2024, total annual revenue from non-gaming apps grew an incredible 1,877%, jumping from $3.5 billion to $69.2 billion.
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This ongoing growth is driven by categories like entertainment, productivity, and photo apps, but it also shows that users have fully embraced current app business models.
In short, the mobile app market is still thriving and remains a powerful channel for companies to deliver digital services.
What the State of Mobile 2025 Really Tells Us
As we covered in our earlier article on mobile trends, apps are naturally evolving as technology advances. The future will likely bring apps that are vastly different from today’s—many of them built around AI-powered solutions.
Companies are actively improving their apps to deepen engagement with existing users and attract new ones. This movement is already creating new demands—some of which weren’t even imaginable before the rise of technologies like AI.
Just think: smartphone screens, now the main interface for users, weren’t even viable 20 years ago. It’s bold to say they’ll disappear entirely—but it’s not unrealistic to imagine that their limitations could open the door to more innovative, intuitive interfaces.
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There are endless opportunities in mobile app development, especially with the rapid growth of Artificial Intelligence. But we’re also pushing the boundaries in IoT, design, and software engineering—and we’re ready to help your business grow.
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