Artificial Intelligence (AI) is revolutionizing the way mobile apps are built and operated, allowing developers to create more efficient and user-friendly apps. AI-powered features have enhanced app performance, user experience, and engagement. The rise of the popular AI tool ChatGPT has contributed to the 200% increase in searches for AI writing in 2023 as people flock to see what kind of work these programs can produce. Additionally, AI is expected to grow to a $309 billion industry by 2026.

Leveraging AI in app development and marketing is an incredibly useful tool at an app marketers disposal. Here we outline some of the ways in which AI has influenced apps and the ways in which they promote engagement and growth.

Predictive Analytics

One of the ways in which app marketers can leverage artificial intelligence in their growth strategy it though predictive analytics. Predictive analysis harnesses customer data such as demographics, behavior, transaction, and subscription data, and uses it to predict how individual customers will behave in the future. The analysis uses a mix of AI and statistical algorithms to predict trends for mobile apps. When using predictive analysis in advertising, it’s possible to identify new potential customers and target them with relevant advertising content on the right platforms at the right time.

Rather than having to calculate the predictive analysis by hand, AI algorithms can analyze user behavior and historical data to predict user preferences and behavior. This enables apps to provide personalized recommendations and suggestions for advertising campaigns.

Personalization

AI algorithms can analyze user data to personalize app experiences, such as recommending content, products, or services based on user preferences. AI-driven personalization leverages a mix of machine learning, deep learning and natural language processing in order to personalize a brand’s marketing messages, content, products and services. This technology reshapes how brands interact with their customers and sets them up for more profitable customer journeys.

By having a deeper access to data, app marketers can personalize their advertisements more accurately and deliver optimal customer experiences. This eventually leads to increased brand loyalty and engagement. Personalization in marketing can increase the ROI and efficiency of a brand’s marketing spend by up to 30%.

Chatbots

Chatbots are another way that artificial intelligence in mobile apps improves the experience for end-users. AI-powered chatbots can communicate with users in natural language, providing automated support and assistance for various app functions. Studies show that 44% of US consumers prefer chatbots to humans in areas of customer support. Having the ability to easily gain access to support increases user retention and longevity. When users know that they will be able to solve their problems quickly, they are more likely to keep coming back into the app.

By using chatbots, brands can guarantee that someone is on the other end of a support window at all times. This lets them offer assistance outside of normal business hours. 90% of consumers say the quick resolution of their questions is their most important customer service requirement. Utilizing AI technology in mobile apps for chat support helps them compete.

Voice Assistants

Voice assistants like Siri and Alexa use AI to understand natural language and respond to user queries, making it easier for users to interact with their apps hands-free. Nearly 1 in 4 US adults already have a smart speaker in their home. Voice assistants and conversational AI are quickly increasing in popularity in most major markets and becoming a normal part of people’s lives around the world. Because of this increased popularity, consumers will soon expect voice assistants to be readily available on their frequented apps.

This tool comes in handy with many verticals, specifically with language translation and education apps. Users can speak directly into the app platform and receive responses to their queries instantly. For example, if a user is learning a new language, they could practice their pronunciation by speaking into the app. This helps with the quality of learning and the retention rates of those users. If an app is delivering a high quality service, consumers will keep coming back.

Fraud Detection

AI algorithms can analyze user behavior and detect suspicious activity to prevent fraud, such as in financial and eCommerce apps. Traditional methods of fraud detection are still widely used by most fintech companies in contrast to AI. However, many are adjusting to leverage machine learning and artificial intelligence, improving ways to detect fraud.

Artificial intelligence is incredibly useful for app fraud detection because it continuously works to reduce the number of false positives (genuine users being blocked) by improving the accuracy of its rules. It does all this at such speeds that it doesn’t impact the user experience. AI can help detect credit card fraud, identity thieves and misuse of account activity in order to make users feel safe when trusting an app.

Takeaways of Influence of AI on Apps

AI has enabled mobile apps to become more intelligent, responsive, and personalized. As AI technology continues to evolve, we can expect even more innovative and intelligent app experiences in the future. Here are some benefits of leveraging AI technology for app retention. 

  • Predictive Analytics: One way app marketers can optimize their their growth strategy with AI is through predictive analytics. Rather than having to calculate the predictive analysis by hand, AI algorithms can analyze user behavior and historical data to predict user preferences and behavior.
  • Personalization: AI algorithms can analyze user data to personalize app experiences, such as recommending content, products, or services based on user preferences. This technology reshapes how brands interact with their customers and sets them up for more profitable customer journeys.
  • Chatbots: AI-powered chatbots can communicate with users in natural language, providing automated support and assistance for various app functions. Studies show that 44% of US consumers prefer chatbots to humans in areas of customer support.
  • Voice Assistants: Voice assistants like Siri and Alexa use AI to understand natural language. They also respond to user queries, making it easier for users to interact with their apps hands-free. Because of their increased popularity, consumers will soon expect voice assistants to be readily available on their frequented apps.
  • Fraud Detection: AI algorithms can analyze user behavior and detect suspicious activity to prevent fraud. This includes credit card fraud, identity thieves and the misuse of account activity.