Although artificial intelligence technologies are gaining popularity in the app market, they are losing to regular apps in retaining users long-term. According to a new report by RevenueCat, even though AI-powered apps generate good revenue in the initial stage, subscribers abandon them faster. Reports techcrunch.com.
RevenueCat, which provides subscription management tools, published interesting data in its 2026 report. According to it, users of AI-based apps cancel annual subscriptions 30 percent faster than regular apps. This conclusion was drawn by analyzing over 1 billion transactions and $11 billion in revenue data.
Currently, 27.1 percent of all app categories use artificial intelligence capabilities. This figure is particularly high in photo and video editing apps, accounting for 61.4 percent. However, AI integration is much lower in gaming, travel, and business sectors.
Research results show that the annual retention rate for AI apps is 21.1 percent, while for regular apps, this figure is 30.7 percent. A similar situation was observed with monthly subscriptions. Users frequently switching to other apps is explained by the rapid evolution of artificial intelligence technologies. People are always looking for the latest and most perfect technology.
Nevertheless, AI apps also have their unique advantages. They are 52 percent ahead of regular apps in terms of conversion rates from free trials to paid subscriptions. AI apps also lead in generating revenue from downloads and monthly profits. However, refund rates are also 20 percent higher for them.
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