ChatGPT Emerges as AI Chatbot Leader, But Surprising Competitors Emerge in Revenue
ChatGPT, the renowned AI-powered chatbot developed by OpenAI, has firmly cemented its position as the frontrunner in the AI chatbot market for mobile devices. Boasting an impressive number of downloads and substantial revenue, ChatGPT has become synonymous with the ultimate AI chat experience. However, it faces unexpected challenges from other AI chatbots and photo AI apps that are generating even higher revenue figures.
Since its launch on iOS devices in May of this year, ChatGPT has experienced consistent growth in both downloads and revenue. It started with an impressive 3.9 million downloads in its inaugural month, and this number soared to 23 million by September 2023, according to research conducted by Apptopia. Furthermore, ChatGPT’s monthly active users have skyrocketed from approximately 1.34 million in May to an astounding 38.88 million in September.
Notably, ChatGPT has also achieved commendable success in terms of consumer spending. Its revenue surged from $352,929 during its launch month to a remarkable $1.98 million by September, reaching nearly $2.39 million by October 24. However, despite these impressive numbers, ChatGPT is not the top revenue-generating app in the AI chatbot space. In September, Chat & Ask AI and ChatOn — AI Chat Bot Assistant outperformed ChatGPT, amassing nearly $3.38 million and $2.11 million in revenue, respectively. Additionally, AI Chatbot — Nova and AI Chatbot: AI Chat Smith secured significant revenue figures of around $1.44 million and $1.72 million in September.
This landscape showcases an intensifying competition for user attention on mobile devices, with several AI chatbot apps surpassing the milestone of 2 million downloads in September alone. Notably, apps such as Chat & Ask AI, ChatOn — AI Chat Bot Assistant, AI Chatbot — Nova, and AI Chatbot: AI Chat Smith gained impressive traction, with download numbers ranging from 2.02 million to 3.1 million. These generic apps seem to have leveraged App Store optimization strategies, enabling them to rank higher for relevant search terms such as AI Chat. Although ChatGPT’s 23 million downloads in September far exceed these numbers, it highlights the vast market potential for AI apps beyond OpenAI’s dominion.
Moreover, Character.ai, a chatbot startup supported by a16z, has emerged as a formidable competitor, amassing 2.39 million downloads as of September. The app allows users to interact with and create their own AI personas, attracting a dedicated user base.
Additionally, numerous AI photo apps employing AI technology for editing effects and personalized images are challenging ChatGPT’s supremacy in terms of downloads, usage, and in-app purchase revenue. While ChatGPT secured 23 million downloads in September, apps like Remini and Picsart AI Photo Editor came remarkably close with 16.17 million and 16.05 million downloads, respectively.
These photo apps also boast a substantial user base. For instance, Remini garnered 6.2 million monthly active users in September, while FaceApp exceeded 6.4 million. Other popular apps like PicsArt, Wonder — AI Art Generator, and Facetune AI Photo/Video Editor witnessed high usage, with monthly active users ranging from 4.27 million to 5.22 million.
Surprisingly, AI photo apps often generate higher revenue through in-app purchases in comparison to ChatGPT. This can be attributed to varying factors. ChatGPT also offers its premium subscription, ChatGPT Plus, through the web, where users heavily interact with the chatbot assistant. Conversely, AI photo apps primarily generate revenue within users’ smartphones as they engage with their existing photo libraries. Furthermore, these apps often achieve viral success, leading to increased revenue through extended usage and ongoing subscriptions as users explore additional features.
In terms of revenue, ChatGPT generated $1.98 million in mobile consumer spending as of September 2023. In contrast, apps like Remini, PicsArt, Wonder, BeautyPlus — AI Photo/Video Edit, FaceApp, and Facetune: AI Photo/Video Editor surpassed this figure, amassing revenue of approximately $6.22 million, $4.27 million, $2.08 million, $4.78 million, $6.42 million, and $5.22 million, respectively.
However, the popularity of AI photo apps may not match the enduring success of ChatGPT. For instance, Lensa, which experienced viral success in the previous year, witnessed a decline in downloads from 23.44 million in December 2002 to 413,814 monthly installs as of September 2023. Additionally, monthly active users dwindled from nearly 24.9 million to 739,000. Similarly, Lensa’s mobile consumer spending plummeted from over $24 million to $739,000. These statistics indicate that users often transition between viral AI photo apps as they explore new features and alternatives.
Although ChatGPT reigns supreme with its 23 million downloads and substantial revenue, the AI chatbot market is brimming with competitiveness. Surpassing ChatGPT in revenue and performance metrics, various AI chatbot apps and photo AI apps present a compelling challenge. As these apps capitalize on unique features and enhanced user experiences, they ensure an exhilarating battle for the top spot in this dynamic industry.
