India Leads Global AI App Downloads, But Lags in Revenue Generation

India leads AI app downloads with 21% share globally

India has become the largest market for adoption of AI mobile applications, contributing 21% to global AI app downloads of over 2.2 billion in the first eight months of 2024, data from Sensor Tower showed. Chatbot apps such as ChatGPT, Microsoft Copilot, Google Gemini are the most downloaded AI apps along with image/video editing and play apps. However, most Indian users use these apps for free. North America and Europe contributed 68% of in-app purchase revenue of AI apps, which has surpassed $2 billion globally so far this year with India's share at less than 2%, data showed. Sensor Tower estimates that for full year 2024, total revenue from AI apps will reach $3.3 billion -- a 51% year-on-year surge. 2023 was the year of explosive growth for global AI+Chatbot apps, with downloads increasing over 14 times on year to nearly 600 million. In the first eight months of 2024, downloads of these apps have already exceeded 630 million, surpassing the entire 2023 total, the firm said. OpenAI's chatbot app ChatGPT ranked number one in terms of downloads globally, followed by AI image editing app Remini. Photoroom AI Photo Editor ranked number three and Google's Gemini at four. "Consumer chatbots are increasingly becoming popular for generative purposes such as text, image, video, etc. Simple use-cases such as transcription, language translation, note-taking, summarisation (and) voice assistants/companions will see much adoption in the near term," said Neil Shah, partner and cofounder at technology research firm Counterpoint Research. "But we believe, with GenAI processing capabilities on the edge, we are moving towards an 'app-less ecosystem' which will be created by Google's Android OS and Apple's iOS," he added. He explained that AI agentic systems, or AI systems that can operate autonomously without human intervention, will be able to automatically extract information, process data and take action on behalf of the user. "For instance, if my anniversary is approaching, the AI agent should be able to get my favourite restaurant booking, the clothes I like to shop, etc," Shah said. "I see a very large monetisable advertising opportunity here." However, with increased AI usage on the edge, device makers will need to innovate for faster processors and enhanced memory storage for a true AI experience. For mini models to be downloaded on-device it currently requires storage capacity of 4-5 GB. "In terms of compute and processing capabilities, the device ecosystem is ready to support AI. For instance, the NPU (neural processing unit) powered chipsets by Qualcomm and MediaTek are built to support AI usage. But, in terms of memory, device makers would at least need 12 GB RAM available for AI apps and agentic workflows," Shah said.

India Leads Globally In Downloads Of AI Apps Like ChatGPT, Google Gemini

However, India accounted for just 2% of in-app purchase revenue, while North America accounted for nearly half of the global revenue India has surpassed the US to become the largest market for AI mobile app downloads. According to data from digital intelligence platform Sensor Tower, the country accounted for 21% of the global AI app downloads. AI app downloads by Indians surpassed the 2.2 Bn mark by August 2024. ChatGPT, Microsoft Copilot, and Google Gemini were the top three most downloaded apps in India, alongside image/video editing and play apps. India was followed by Latin America, Europe and South America in terms of downloads, accounting for 20%, 15% and 14% share, respectively. However, India accounted for just 2% of in-app purchase revenue. Overall, the revenue for in-app purchases globally stands at $2 Bn so far this year, the report said. Of this, North America and Europe together account for 68% revenue of AI apps. Just North America accounts for 47% of global AI app earnings. Sensor Tower pegged the estimated revenue for 2024 at $3.3 Bn, a surge of 51%. The report added that AI app downloads in the first eight months of 2024 at 630 Mn surpassed the download count for the entire 2023. Globally, ChatGPT was the most downloaded app, followed by image editing app Remini. At number three and four were Photoroom AI Photo Editor and Google's Gemini, respectively. ByteDance's chatbot app DouBao was at fifth position, while Microsoft Copilot and Chatbot AI & Smart Assistant claimed eighth and ninth positions, respectively. India is among one of the biggest markets for companies in terms of app downloads due to the large population, increasing internet access, and improving penetration of smartphones. As per a report, the total app downloads in India stood at about 26 Bn in 2023. Artificial intelligence (AI) has taken the world by storm over the past few years. India is among the leading countries in the world in terms of adoption of AI. This has also spawned the rise of several AI startups in the country, which are offering various use cases for the emerging technology. India is currently home to over 100 generative AI startups. These startups have also attracted a lot of investor interest. Indian AI startups have raised over $600 Mn in funding since 2019. Spearheading this transition are names like SarvamAI and Krutrim, which are focused on building Indic LLMs. However, the capital intensive nature, long gestation period and infrastructure remain the most challenging hurdles for the AI industry in India.