The AI bubble shows no signs of bursting, at least when it comes to consumer spending on AI apps. According to app analytics firm Appfigures, overall spending on AI apps has skyrocketed to $1.42 billion in 2024, marking a staggering 274% increase from 2023. This remarkable growth is largely attributed to the phenomenal success of OpenAI's ChatGPT, which has become the undisputed leader in the AI app market.

ChatGPT's dominance is evident in its revenue figures, which consistently surpass the aggregate revenue of other top AI assistant apps. This is a remarkable feat, considering the app launched in May 2023 and has since been downloaded an astonishing 353 million times. The app's popularity is not limited to a specific age group, with users ranging from teenagers to seniors. However, the demographics do reveal some interesting trends, with over half of ChatGPT's mobile users being under the age of 25.

This age group's affinity for ChatGPT may be attributed to their willingness to experiment with new technology or, as the Pew Research Center suggests, the app's potential to assist with schoolwork. In fact, the center estimates that a quarter of U.S. teens have used ChatGPT for academic purposes, a figure that has doubled since 2023. On the other hand, users between ages 50 and 64 form the second-largest age demographic, accounting for 20.2% of users.

One notable aspect of ChatGPT's user base is the significant gender gap. Appfigures estimates that men make up a whopping 84.5% of all users, across age groups. This disparity may be attributed to the fact that women tend to be more skeptical about AI than men, as indicated by a 2022 Pew report. Furthermore, an Axios poll found that 53% of women surveyed would not allow their children to use AI at all, compared to 26% of men.

Women's reservations about AI may also stem from their increased vulnerability to the technology's negative consequences, such as sexually explicit deepfake images. Additionally, McKinsey estimates that women are more likely to lose their jobs to automation than their male counterparts, which could further exacerbate their resistance to AI adoption.

Despite ChatGPT's current dominance, the AI app market is not without its challenges. The emergence of DeepSeek, a free, open-source alternative, may pose a threat to OpenAI's market share. Although DeepSeek has already dethroned OpenAI as the top app in the App Store, maintaining its current level of hype will be crucial to its long-term success.

The AI app market's remarkable growth has significant implications for Apple and Google, which retain about 30% of revenue from in-app purchases. According to Appfigures, mobile AI apps constitute a $2 billion market, with ChatGPT being the driving force behind this growth. As the AI landscape continues to evolve, it will be interesting to observe how these tech giants adapt to the changing landscape.

In conclusion, the AI app market's surge to $1.42 billion is a testament to the technology's growing appeal and adoption. While ChatGPT's dominance is undeniable, the emergence of alternative apps like DeepSeek and the underlying demographic trends will be crucial factors in shaping the industry's future. As AI continues to permeate various aspects of our lives, it is essential to monitor its development and implications, ensuring that its benefits are equitably distributed across all demographics.