AI App Race Intensifies as Tech Giants Vie for Consumer Attention

Google’s quiet global rollout of its Gemini iPhone app on Thursday (Nov. 14) marks the latest move by tech companies to capture mainstream users seeking AI tools for everyday tasks on their phones.

The accelerating competition in consumer AI apps signals a high-stakes battle for customer attention and wallets as companies race to convert casual users into paying subscribers through features like chatbots, photo editing and writing assistance.

“One good thing about AI-powered apps is their ability to create personalized experiences,” said Dmytro Tymoshenko, the CEO of Noiz, which creates AI-powered summaries of YouTube videos. “AI is able to analyze data at a very high speed, which allows it to, for instance, recommend content based on user preferences quite fast.”

With the new Google app, iPhone users can now access Gemini through a standalone app, offering features like real-time conversational AI via Gemini Live, personalized learning tools and image generation powered by Imagen 3. The app also integrates with Google services such as Gmail, YouTube and Google Maps, allowing users to access relevant information within a single conversation.

A growing number of AI-powered mobile apps are reshaping user experiences with advanced features. Apple’s latest iOS update introduced “Apple Intelligence,” enhancing writing assistance, photo editing and Siri’s capabilities. TikTok launched Symphony Creative Studios, an AI platform enabling advertisers to create videos and digital avatars from text prompts. Adobe unveiled a mobile version of Adobe Express, integrating AI tools like text-to-image and generative fill from its Firefly suite.

AI-powered mobile apps are influencing commerce by automating processes and enabling more tailored consumer interactions. They provide businesses with tools to create targeted marketing and streamline operations, affecting how companies allocate resources and engage with customers. 

Recent AI-powered mobile apps are being applied to commerce in ways that emphasize efficiency and personalization. Shopify’s Sidekick provides merchants with tools to analyze sales and manage customer interactions, aimed at improving operational processes. Amazon is experimenting with AI shopping agents that recommend products and may eventually handle purchases autonomously. Sam’s Club has integrated AI-powered mobile apps into its stores to streamline the shopping experience. 

“AI can learn a lot about a person’s habits, preferences and desires, and then with that information it can adjust the user experience on the app,” Edward Tian, CEO of GPTZero, told PYMNTS. “Since user experience is key for mobile apps, that can be very impactful where retention is concerned.”

Tymoshenko said that one industry that stands out when discussing AI-powered apps is media and entertainment. Apps like Spotify, Apple Music and Netflix leverage AI to deliver personalized and unique experiences for their users.

“But notably, now I’m also seeing how the healthcare industry is benefiting from AI-driven apps,” he said. “There are apps for patients with patient data and health recommendations, apps for psychological support or simple fitness apps. All of them incorporate AI to once again personalize the experiences, but also for customer support. For instance, lots of mental health apps have AI-powered chatbots.”

Supply chain and legal tech are also seeing significant growth in AI mobile apps, Edward Smyshliaiev, chief technology officer of the tech firm Erbis, told PYMNTS. In the supply chain, AI apps are optimizing logistics by providing real-time inventory tracking, route optimization and predictive analytics, which help businesses manage demand and streamline operations with greater accuracy. 

“In legal tech, AI apps are making document management easier by automating contract review and analysis, detecting key clauses and even assisting with compliance tracking — all from a smartphone,” he added. “Additionally, sectors like finance continue to embrace AI apps for features like fraud detection and personalized financial insights, while healthcare apps leverage AI for virtual consultations and wellness tracking.”

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