How AI Is Disrupting the App Store—What’s Next?

FAQs

How does AI impact app developers?

Developers must shift from creating standalone mobile apps to building:

• AI-powered services that integrate with larger ecosystems.
• AI extensions for existing platforms (e.g., plugins for ChatGPT or Microsoft Copilot).
• Subscription-based AI tools instead of one-time app purchases.

For example, rather than making a budget-tracking app, developers might offer an AI-powered financial assistant that integrates into an AI chatbot.

What are the privacy risks of AI replacing apps?

Since AI tools rely on continuous data input, they may collect more personal information than traditional apps. This raises concerns about:

• Data storage: AI assistants store queries and responses.
• Personalization risks: AI may use personal data to tailor responses in ways users don’t expect.
• Centralized control: Unlike individual apps, AI models are owned by a handful of large companies, increasing the risk of data misuse.

For example, a weather app only tracks your location, but an AI assistant might track your search history, purchases, and conversations to offer suggestions.

How can businesses monetize AI if the App Store model fades?

Businesses will rely on AI-first monetization models, such as:

• Subscription-based AI services (like ChatGPT Plus or Claude Pro).
• AI-powered recommendations that drive purchases (Amazon’s AI-driven shopping assistant).
• Pay-per-use AI tools (AI-powered video editing without needing a full app).

Instead of selling a photo-editing app, a company might offer on-demand AI image enhancement, where users pay per edit rather than downloading an app.

What does this mean for users?

Users will enjoy more seamless and personalized digital experiences but with some trade-offs:

• Less reliance on traditional apps.
• More AI-powered interactions across devices.
• Greater convenience, but also greater data concerns.

For instance, instead of managing a travel app, weather app, and budgeting app, a single AI assistant could handle itinerary planning, weather updates, and expense tracking all in one conversation.

Will AI be free, or will users have to pay?

While basic AI tools may remain free, advanced AI models will likely require subscriptions or usage-based fees. Already, services like ChatGPT Plus ($20/month) and Google Gemini Ultra charge for premium AI access.

AI may follow the freemium model, where basic tasks are free, but personalized, high-quality, or business-level AI features require payment.

What should developers and businesses do to prepare?

To stay ahead, businesses and developers should:

• Experiment with AI integrations (adding AI to existing services).
• Develop AI-powered solutions rather than traditional apps.
• Adopt new pricing models (subscriptions, microtransactions, or AI-based advertising).

For example, instead of building a fitness app, companies could create an AI personal trainer that delivers customized workouts based on user data.

AI is reshaping digital experiences, and those who adapt early will lead the next generation of innovation.

How will AI impact mobile operating systems like iOS and Android?

AI will likely become deeply integrated into mobile operating systems, making apps less necessary. Instead of opening multiple apps, users might interact with an AI layer that performs tasks directly.

For example:

• Instead of opening a calendar app, users might just say, “Schedule a meeting at 3 PM,” and AI will handle it.
• Instead of a photo editing app, AI could enhance images automatically based on user preferences.
• Instead of separate health and fitness apps, AI could analyze wearable data and provide personalized insights.

This could make the traditional app-based interface obsolete over time.

Can AI really replace creative apps like Photoshop or Final Cut Pro?

Yes and no. While AI tools can automate many aspects of design, editing, and content creation, professional-grade software still offers more control and precision. However, AI is making creative work easier and more accessible.

For example:

• Runway ML and Adobe Firefly use AI to edit videos and images with simple prompts.
• Canva’s AI tools generate logos, presentations, and designs with minimal effort.
• ChatGPT and Jasper AI help with writing, reducing the need for word-processing apps.

While professionals may still prefer traditional software, casual users may never need to download a dedicated app again.

What happens to in-app advertising if AI replaces apps?

If AI replaces app-based ecosystems, in-app advertising could decline. However, new advertising models will emerge, such as:

• AI-driven product recommendations instead of banner ads.
• Sponsored AI results (similar to Google Search ads).
• Branded AI interactions where companies create AI personalities to promote their services.

For instance, instead of an ad inside a food delivery app, an AI assistant might suggest a sponsored restaurant option when asked for dinner recommendations.

Will AI create new opportunities for independent developers?

Yes! While traditional app stores are shrinking, developers can:

• Create AI-powered plugins for AI assistants.
• Develop industry-specific AI models that businesses can use.
• Sell AI-powered microservices instead of full apps.

For example, an independent developer could create a custom AI tool that helps e-commerce stores generate product descriptions—without ever needing an app.

What happens to app store revenue if fewer people download apps?

If AI reduces app downloads, Apple, Google, and other platforms will need to pivot. Potential strategies include:

• Charging developers for AI model distribution within their ecosystems.
• Expanding cloud-based AI services that integrate directly into their operating systems.
• Increasing subscription-based revenue (e.g., bundling AI-powered services into iCloud or Google One).

This could mean fewer paid app downloads but a rise in AI-related monetization strategies.

Could AI make smartphones less important?

Possibly. With AI integrated into wearables, smart glasses, and voice assistants, people may rely less on traditional touchscreen-based smartphones.

Imagine a future where:

• AI-powered smart glasses replace smartphones for messaging and navigation.
• Wearable AI devices like Humane AI Pin or Rabbit R1 replace mobile apps.
• AI assistants interact with smart home devices, reducing the need for a mobile screen.

While smartphones won’t disappear overnight, their role may shift as AI moves beyond the app ecosystem.

Is AI a threat to big tech companies that rely on app stores?

AI is both a threat and an opportunity for companies like Apple and Google. If users no longer download traditional apps, app store revenue could decline. However, these companies are already adapting:

• Apple is integrating more AI features into iOS (e.g., on-device AI processing).
• Google is shifting toward AI-powered search, reducing the need for individual apps.
• Microsoft is pushing AI assistants like Copilot, moving away from traditional software models.

The companies that embrace AI-first experiences will thrive, while those that resist could struggle.

What’s the biggest challenge in an AI-first world?

The biggest challenge is control—who owns and regulates AI? If only a few companies (OpenAI, Google, Microsoft) control AI, they could dictate:

• What information AI provides (bias concerns).
• Which businesses get visibility (advertising dominance).
• How much users pay for premium AI services.

This could make AI-driven ecosystems even more centralized than app stores, creating new regulatory and ethical challenges.

What’s the best way for developers and businesses to prepare?

To stay ahead, businesses should:

• Start integrating AI into their existing services.
• Shift to AI-first business models, moving beyond traditional apps.
• Explore AI marketplaces (like OpenAI’s GPT Store) instead of relying on app downloads.

For example, a fitness company might replace its mobile app with an AI-powered personal trainer that works across devices.

Will AI change how people interact with technology forever?

Absolutely. AI is shifting digital experiences from manual interactions (taps, clicks, and swipes) to conversational and predictive AI responses.

In the near future, users might:

• Talk to an AI assistant instead of searching the web.
• Let AI handle daily tasks (emails, shopping, scheduling) automatically.
• Interact with devices through voice, gestures, or even brain interfaces instead of screens.

This isn’t just an app store revolution—it’s a fundamental shift in how humans use technology.