Generative AI Apps Hit 36 Billion Hours as Market Competition Sharpens

ChatGPT officially reached one billion monthly active users in May 2026, securing the title of the fastest mobile application to hit that milestone. Despite this record, its market grip is loosening. For the first time, ChatGPT’s True Audience share dipped below 50% in March as Google Gemini and Claude captured significant segments of the user base. Claude, in particular, has seen its US market share triple, signaling a move away from a single-player market toward a more fragmented landscape.

Monetization is following this growth trajectory. Global in-app purchase revenue for AI tools is projected to exceed $4 billion in the first half of 2026, a 36% jump from the previous half-year period. This shift is driven by users opting for premium, utility-focused subscriptions. Claude’s average revenue per user in the United States serves as a prime example, climbing from under $0.50 last September to $2.76 by May 2026.

The influence of these tools now extends deep into retail and advertising. Amazon shoppers interacting with the Rufus assistant convert at twice the rate of traditional shoppers, while US digital ad spending on AI-themed content hit $1.3 billion in the first five months of the year. With over 200,000 apps now highlighting AI capabilities in their descriptions, the technology has transitioned from a novel experiment to a standard requirement for digital survival.