Just how Big is the Market for AI Avatars?
This is a single insight from This Week in Apps - Pokémon's Sleeping Giant. Check out the full article for more insights.
Everyone's talking about AI all the time now, but what you may not know is that a lot of people talk with AI these days, making apps like Character AI a real threat to dating apps.
That might sound a bit dramatic, but may not once we look at the numbers.
In case you're not familiar, Character AI offers AI avatars you can chat with. The avatars have different personalities,"from legendary heroes and mischievous villains to unhinged weirdos and loyal sidekicks" as the app's description says.
Just how big is the market for AI avatars? BIG!
According to our App Intelligence, Character AI's net revenue doubled so far this year, crossing $1M per month for the first time in August. And that's after store fees.
We estimate that since it was released, Character AI has earned a total of $11.5M in after-fee revenue from 57M downloads across the App Store and Google Play.
More than half of the revenue came from the US, but revenue from almost every other major country has been growing rapidly for the last year, indicating that it's spreading globally.
Should you go build an AI avatar right now? Probably not. 2023 is over. But new opportunities are popping up so often these days that the real question developers should be asking is "what should I build first". And the answer to that is all in the data.
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All figures included in this report are estimated. Unless specified otherwise, estimated revenue is always net, meaning it's the amount the developer earned after Apple and Google took their fee.
