AI Companion Apps Market - $120M Revenue Forecast

Growing Demand for AI Companion Applications

Interest in AI “companion” applications, beyond well-known platforms such as ChatGPT and Grok, is demonstrably increasing. Current data from app intelligence firm Appfigures reveals that of the 337 AI companion apps currently active and generating revenue globally, 128 have been launched in 2025 to date.

Market Performance and Revenue

This specific segment of the mobile AI market has already produced $82 million in revenue during the first six months of the year. Analysis suggests it is projected to exceed $120 million in total revenue by the end of 2025.

Defining AI Companion Apps

AI companion apps distinguish themselves from general-purpose chatbots through their anthropomorphic approach to AI interactions. Users are enabled to engage in conversations with customized characters, encompassing roles like friends, romantic partners, or figures from fantasy.

Appfigures defines these apps as those offering interaction with either pre-designed or user-created synthetic personalities intended to simulate genuine character traits.

Leading Applications in the Space

Currently, popular applications within this category include Replika, Character.AI, PolyBuzz, and Chai, among others.

Download Statistics and Growth

As of July 2025, AI companion applications available on both the Apple App Store and Google Play have collectively reached 220 million downloads worldwide. Downloads increased by 88% year-over-year during the first half of 2025, totaling 60 million.

Consumer Spending and Revenue Distribution

Appfigures’ data indicates that, as of July 2025, AI companion apps have generated $221 million in consumer spending globally. Revenue generated by these apps during the first half of 2025 is 64% higher than that of the same period in 2024.

The top 10% of all AI companion apps account for 89% of the total revenue within the category. Furthermore, approximately 10% – or 33 – of these applications have surpassed $1 million in lifetime consumer expenditure.

Revenue Per Download Increase

Revenue generated per download has also seen an increase, rising from $0.52 in 2024 to $1.18 for the category so far in 2025 – a gain of $0.66.

Expansion into the Market by Larger Companies

While dedicated AI companion apps are gaining prominence, larger corporations are also entering the field. xAI, for example, launched AI companions, including anime-style characters and a distinctive 3D fox, in July.

User Attachment and Model Changes

Recent updates to ChatGPT, specifically the release of GPT-5, highlighted a sense of connection among users to the previous model. Many expressed regret over the loss of their AI companion, upon which they had become reliant.

In response to user feedback and concerns regarding GPT-5’s performance, OpenAI CEO Sam Altman temporarily reinstated the 4o model.

Google’s Involvement

Google also entered the market last year by recruiting Noam Shazeer, the founder of Character.ai. The Character.ai application continues to operate and maintains a substantial base of tens of millions of monthly active users.

Popular Companion Types

According to Appfigures’ data, the most sought-after AI companion type is that of an AI girlfriend. 17% of active apps on the market include “girlfriend” in their name, compared to 4% that use “boyfriend” or “fantasy.” Terms like anime, soulmate, and lover are mentioned less frequently.

App Attrition

The firm acknowledges that numerous other AI companion applications were launched on app stores since 2022, but were subsequently removed due to a lack of success in terms of revenue or downloads. These were not included in the analysis.

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