AI-powered subscription apps generate 41% more revenue per user than non-AI apps but are less “sticky,” according to subscription platform RevenueCat.
Its State of Subscription Apps report found AI apps convert free-trial users to paid subscriptions at 8.5%, compared with 5.6% for non-AI apps, based on performance data from apps using its platform.
However, the 339-page report noted that churn rates for AI apps were significantly higher than for non-AI apps, with annual subscriber retention at just 21.1% compared with 30.7%. AI apps’ monthly retention rates are also lagging, retaining about 6.1% of users compared with 9.5% for non-AI alternatives.
“The data shows that while AI hype can drive initial sales, it’s not yet creating the lasting value needed for long-term retention,” RevenueCat reported.
“Apps that solve that retention problem early will own their category,” it added. “[T]hose that don’t are just riding a wave of consumer curiosity.”
