The Top 50 Gen AI Mobile Apps, by MAU, Source: https://a16z.com/100-gen-ai-apps-3/
In the rapidly evolving artificial intelligence landscape, trying to keep up with the latest consumer-facing applications can feel like chasing a moving target. For venture capitalists and investors, understanding which AI apps are really gaining traction is critical to making informed investment decisions. Fortunately, Andreessen Horowitz (a16z), one of Silicon Valley’s most prominent venture capital firms, recently released the third edition of its comprehensive “Top 100 Gen AI Consumer Apps” report, which offers valuable insights into emerging trends, user behavior, and potential investment opportunities.
This latest, 3rd edition, to be released in August 2024, offers a data-driven ranking of the 100 most popular AI products; 50 of which are web-first web products (based on unique monthly visits) and the top 50 AI-first mobile apps (measured by monthly active users). As a16z’s semi-annual report, it serves as an important barometer of the rapidly changing AI consumer landscape and offers investors a unique insight into the apps and platforms that are not just making waves, but actually acquiring and retaining users.
What is particularly striking about this third edition is the rate of change: almost 30% of the companies featured are new entrants compared to the previous report in March 2024. This high rate of turnover underscores the dynamic nature of the AI startup ecosystem and highlights the potential for rapid growth and market change. For investors looking to stay ahead of the curve in the AI space, a16z’s report offers a wealth of actionable information.
Key trends for investors to watch1. The continued appeal of creative tools
Content creation and editing tools continue to dominate the consumer AI app landscape, especially on the web. According to a16z’s analysis, a staggering 52% of web-based applications focus on content creation in various modalities – image, video, music and voice. This trend shows no signs of slowing down, with 58% of new entrants falling into the creative tools category.
The outstanding performers in this area include:
- Luma (#14): A video generation tool
- Viggle (#21): Another video-focused AI application
- SeaArt (#29): A platform for image generation
- Udio (#33): A tool for music generation
Perhaps most notable is the meteoric rise of Suno, a music generator that jumped from No. 36 to No. 5 in just six months. This rapid rise underscores growing consumer interest in AI-powered music creation tools.
For investors, the diversification in the content generation space is particularly notable. While image generation tools once dominated, they now represent only 41% of the top content generation sites. Video and music generation tools are gaining significant ground, likely due to recent advances in output quality.
2. Mobile: The processing powerhouse
On mobile platforms, editing content – especially images and videos – is the most important thing. It is the second largest product category, accounting for 22% of the most popular mobile apps. This trend corresponds to the natural desire of mobile users to edit content captured on their devices.
An interesting development for investors is the success of traditional creative tools that are now focusing on AI. Examples include:
This trend suggests that established brands with a strong user base can successfully integrate AI features to maintain or even expand their market position.
3. The battle for AI assistants is heating up
While OpenAI’s ChatGPT maintains its dominant position as the #1 product on both web and mobile platforms, competition in the AI assistant space is heating up. This presents a great opportunity for investors eyeing potential challengers to ChatGPT’s throne.
The key players to keep an eye on include:
- Perplexity: Currently ranked #3 on the web, this AI-powered search engine focuses on providing precise, timely, and accurate answers with sourced information. With an average visit duration of over seven minutes, Perplexity demonstrates strong user engagement.
- Claude AI: Anthropic’s offering has climbed from 10th to 4th place in the web rankings. The recent introduction of the “Artifacts” feature puts it in direct competition with ChatGPT’s GPTs.
- Luzia: This AI assistant launched at number 25 on the mobile app and has 45 million users worldwide, with a focus on Spanish-speaking markets. Its evolution from a WhatsApp-based chatbot to a standalone app shows the growth potential of language-specific AI assistants.
Indexed Web Growth Chart: Claude vs. Perplexity vs. Chat GPT, Source: … (+)
4. Bytedance’s AI ambitions
TikTok’s parent company, Bytedance, is making increasing inroads into the AI-based consumer app market. The company has secured six spots in the web and mobile rankings with various AI-powered tools:
- Gauth (#44 on the web): An Edtech platform
- Coze (#45 on the web): A bot builder
- Doubao (#47 on web, #26 on mobile): A general assistant
- Hypic (#19 on mobile): A photo and video editor
- Cici (#34 on mobile): An English-language version of Doubao
Bytedance’s aggressive push into AI applications, which stems from its “Flow” research and development division established in late 2023, signals the company’s intention to become a major player in the consumer AI space. For investors, this multi-pronged approach from an established tech giant presents both potential opportunities and competitive challenges for AI startups.
5. The rise of AI in aesthetics and dating
A notable new category in mobile is AI-powered aesthetics and dating apps. Three new entrants in this category made it into the top 50 list:
- LooksMax AI (#43)
- Umax (#44)
- RIZZ (#49)
LooksMax and Umax focus on analyzing and “enhancing” users’ looks, while RIZZ aims to improve conversations on dating apps. These apps have quickly amassed millions of users and are monetized through weekly subscriptions ranging from $3.99 to $4.99.
The rapid proliferation of these apps indicates a growing willingness among consumers to use AI for personal development and social interactions. For investors, this trend could signal untapped potential in AI applications for personal development and relationship building.
6. Discord as a launch pad and growth indicator
The report highlights an interesting correlation between Discord traffic and future success on web and mobile platforms, especially for content generation tools. Many AI startups use Discord as a testing ground and community-building tool before launching standalone products.
As of July 2024, ten AI companies were among the top 100 Discord servers by invite traffic, with half of them having joined since January. Notable examples include:
- Midjourney (retained 1st place)
- CharacterAI
- NovelAI
- Stable diffusion
- Playground AI
For investors, monitoring Discord traffic and engagement could provide early indicators of promising AI startups and products poised for broader market success.
1) Impact on Investment and OpportunityMomentum in Content Creation:
The continued dominance of creative tools, especially in new formats like video and music, suggests continued investment opportunities in this space. Look out for startups pushing the boundaries of AI-generated content quality and usability.
2) Mobile-first strategies:
With mobile users showing a strong preference for AI-powered editing tools, consider investing in startups that prioritize the mobile experience or successfully transform existing apps to integrate AI features.
3) Differentiation of AI assistants:
As the AI assistant market becomes more crowded, look for companies that offer unique value propositions, such as specialized areas of knowledge, increased accuracy, or novel interaction methods.
4) Linguistic and cultural peculiarities:
The success of language-specific AI assistants like Luzia underlines the potential of AI products tailored to specific linguistic or cultural markets.
5) Corporate AI initiatives:
Keep an eye on established technology companies like Bytedance that are aggressively entering the AI space. These efforts may lead to acquisition opportunities or create new competitive dynamics for existing AI startups.
6) New AI use cases:
The rapid adoption of AI in personal aesthetics and dating suggests that consumers are open to AI applications in unexpected areas. Look for startups applying AI to novel personal or social challenges.
7) Community-driven development:
Consider the potential of platforms like Discord as a launchpad for AI products and an indicator of future success. Startups that effectively leverage community feedback and engagement may be better positioned for growth.
Diploma
The AI consumer app landscape is evolving at a breakneck pace, with new entrants constantly disrupting the market. a16z’s third Top 100 Gen AI Consumer Apps report provides valuable insight into this dynamic ecosystem. For investors, this volatility presents both challenges and opportunities. By closely monitoring user engagement trends, emerging categories, and the strategies of both startups and established players, savvy investors can position themselves to capitalize on the next wave of AI-powered consumer applications.
As we move into the second half of 2024 and beyond, it’s clear that AI will continue to be a driving force in consumer technology. The companies that can effectively use AI to solve real user problems, boost creativity, or enhance personal experiences will likely be the ones that define the next generation of industry-leading companies. For investors willing to navigate this complex and fast-moving landscape, the potential gains are significant. As a16z’s report shows, staying up to date on the rapidly changing AI consumer app market is more important than ever for those looking to make strategic investments in this transformative technology.
