According to a recent report from Gartner, mobile app usage is set to decline by a staggering 25% by 2027, primarily due to the rise of AI assistants like ChatGPT and Google Gemini. This prediction raises significant questions about the future of mobile applications and the role they will play in consumer behaviour.
As smartphone users increasingly turn to AI assistants for various functions, the need for traditional apps may diminish. Emily Weiss, senior principal for Gartner’s Marketing Practice, stated, “CMOs should begin scenario planning for the impacts of decreased mobile app usage.”
This shift could particularly affect brands with low app engagement, which might find themselves at a disadvantage as user reliance on apps wanes. Weiss noted that while this could benefit brands less dependent on app-driven revenue, others may face severe consequences as consumers pivot to AI for their needs.
The implications extend beyond mere usage statistics. A loss of app users translates to diminished opportunities for first-party data collection and a reduced ability to reach audiences through mobile push notifications. As companies adapt to these changes, many may consolidate their apps into partnerships or consortiums, allowing them to reach a wider audience while sharing the costs associated with app development and maintenance.
Gartner's report also highlights a broader trend in digital marketing. By 2026, over a third of web content is expected to be created specifically for generative AI-powered search. Given that search currently drives more traffic to commercial websites than any other source, a shift in algorithms could have dire consequences for businesses that rely heavily on search-driven traffic. Weiss emphasised the need for CMOs to hire talent skilled in AI and search algorithm optimisation, stating, “It will be important to upskill the function by investing in search and content talent with AI skillsets.”
Moreover, as consumers move away from traditional social media, Gartner predicts that by 2028, digital marketers will allocate 30% of their paid social budget towards advertising on subscription-based channels. These closed communities could provide a more engaged audience, as Weiss noted, “Brands can leverage closed-group subscription channels... to reach relevant target audiences who are already engaging with content they self-selected into consuming.”
Finally, by 2027, it is anticipated that 85% of customer data will be collected through automated interactions led by AI agents. Weiss remarked, “There will be more AI agents than people,” suggesting that the ways brands interact with consumers are on the verge of a monumental shift.
As the landscape evolves, the question remains: are we witnessing the twilight of mobile applications in favour of more integrated AI solutions? The answer may redefine how consumers and brands engage in the digital age.
