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India has emerged as the largest market for artificial intelligence (AI) mobile applications, accounting for 21% of global downloads, which crossed 2.2 billion in the first eight months of 2024, according to data from Sensor Tower reported by media outlets.
However, despite its massive user base, most Indian users rely on free versions of these apps, limiting the country’s share in in-app purchase revenue.
ChatGPT, Copilot, and AI Editing Apps Dominate
AI-powered chatbot platforms such as ChatGPT, Microsoft Copilot, and Google Gemini are among the most popular apps in India, along with a variety of image and video editing tools. Globally, OpenAI’s ChatGPT ranked first in total downloads, followed by Remini, an AI image editor, while Photoroom AI Photo Editor and Google Gemini secured the third and fourth positions, respectively.
In-App Purchases Driven by North America and Europe
While India leads in downloads, North America and Europe generated 68% of the total in-app purchase revenue, which surpassed $2 billion worldwide so far in 2024. India’s contribution remains below 2% of this figure. Sensor Tower projects that total revenue from AI applications will reach $3.3 billion by the end of the year, marking a 51% increase over 2023.
AI Adoption Surges, Downloads Outpace 2023
The adoption of AI apps witnessed remarkable growth, with global downloads rising over 14 times in 2023 to nearly 600 million. As of August 2024, AI app downloads have already surpassed 630 million, exceeding last year’s total, indicating the rapid momentum in the sector.
“App-less Ecosystem” to Shape AI Future
Neil Shah, partner and co-founder at Counterpoint Research, noted the increasing demand for AI-driven consumer chatbots for text, image, and video generation. “Simple use cases like transcription, language translation, note-taking, summarization, and virtual assistants will see widespread adoption soon,” Shah said.
He further emphasized the industry’s shift toward an “app-less ecosystem,” where AI processing occurs directly on devices through platforms like Google’s Android OS and Apple’s iOS. This transformation enables AI systems to operate autonomously, extracting information and performing tasks without user input.
Innovation Needed for AI-Ready Devices
Shah highlighted that while smartphones and other devices are well-equipped with advanced processors and neural processing units (NPUs) from Qualcomm and MediaTek, further innovation is essential. “Manufacturers will need to provide at least 12 GB of RAM to support effective AI applications and agentic workflows,” Shah said.
He also pointed out that current AI mini models require approximately 4-5 GB of storage to operate efficiently on devices. As AI functionalities expand, device makers must prioritize faster processors and larger memory storage to meet the growing demands of users.
