India Emerges as the Top AI App Market
India has solidified its position as the world leader in AI mobile application adoption, accounting for a staggering 21% of all AI app downloads globally in the first eight months of 2024. Data from Sensor Tower indicates that more than 2.2 billion AI apps were downloaded worldwide during this period, with India at the forefront of this digital surge. Popular AI-powered applications such as ChatGPT, Microsoft Copilot, and Google Gemini, as well as AI-driven image and video editing tools, were among the most downloaded apps in India.
The widespread adoption of these tools highlights India’s increasing comfort with AI technologies, which are being used for a variety of tasks, from content creation and communication to business operations and personal assistance.
Free Usage Dominates in India
While India leads in AI app downloads, the majority of users in the country prefer free versions of these applications. This contrasts sharply with North America and Europe, where AI app users contribute significantly to in-app purchase revenues. In fact, North America and Europe collectively accounted for 68% of global in-app purchases for AI apps in 2024, a figure that far outpaces India’s contribution.
India’s share of global AI app revenue remains modest, contributing less than 2% despite its dominance in downloads. However, the global AI app market has seen significant growth, with revenues exceeding $2 billion in 2024. Sensor Tower forecasts that this number will continue to climb, reaching $3.3 billion by the end of the year—representing a 51% increase from the previous year.
AI App Usage Skyrockets Globally
The rapid growth in AI app adoption is part of a broader global trend. In 2023, AI app downloads soared by more than 14 times, nearing 600 million by the end of the year. This upward trajectory has continued in 2024, with more than 630 million downloads recorded in the first eight months alone, surpassing the total for all of 2023.
Leading the global charge in AI app downloads is OpenAI’s ChatGPT, which has seen widespread adoption as both a productivity tool and a personal assistant. Other highly downloaded AI apps include Remini, an AI image editing app, Photoroom AI Photo Editor, and Google’s Gemini, a suite of AI-powered tools for various creative and professional uses.
Future of AI Apps: Moving Towards an ‘App-less Ecosystem’
As AI technologies continue to advance, experts predict that the use of AI-powered apps will only increase. These applications are already being employed for a wide range of generative tasks, including text, image, and video creation, as well as simpler functions like transcription, translation, and voice assistance. The demand for AI tools in creative and professional spaces is growing as more users recognize their ability to enhance productivity and streamline workflows.
Looking ahead, the future of AI could shift towards the development of agentic systems—AI models capable of performing complex tasks autonomously without direct human input. These systems would be able to gather information, analyze data, and take actions on behalf of users based on predefined preferences or learned behaviors.
Challenges and Opportunities for AI on the Edge
As AI technology becomes more embedded in daily life, its increased use will present challenges for device manufacturers. AI apps that run on the edge—processing data locally on users’ devices rather than relying on cloud services—will require faster processors and greater memory capacity to function efficiently.
To support the growing complexity of AI models, particularly those that enable real-time tasks like voice recognition, image processing, and decision-making, device makers will need to invest in advanced hardware solutions. Innovations in processors, memory storage, and battery life will be crucial to ensuring that smartphones and other mobile devices can handle these intensive AI operations without compromising performance.
In tandem with these technological challenges, there are also opportunities for growth. The rise of AI on the edge presents a chance for businesses to develop hardware solutions tailored specifically for AI-driven applications. Additionally, as more AI apps become integral to users’ daily routines, companies can leverage data-driven insights to offer personalized services and products, enhancing user experiences and driving new revenue streams.
India’s Role in the AI Revolution
India’s leadership in AI app downloads marks a significant milestone in the country’s digital transformation. Although most users in India rely on free versions of AI apps, the high adoption rate reflects a growing familiarity and comfort with AI technology among the Indian population. As AI continues to evolve, India’s role in shaping global trends in AI adoption and usage is likely to expand.
However, to fully capitalize on its position as a leading AI market, India will need to address several challenges, including encouraging in-app purchases and increasing investment in AI-related industries. With the right infrastructure and support, India could become a major player not only in AI app downloads but also in the development of AI technologies and innovations that impact the global digital economy.
As AI-powered applications become more sophisticated and integrated into everyday life, India’s journey in the AI landscape will be one to watch, offering insights into the future of digital technology and its role in shaping industries and societies worldwide.
(With inputs from agencies)
