NOTEWORTHY NEWS #25: OUR TAKE ON THE LATEST AI/GENAI NEWS
By Jeremy Lockhorn, SVP, Creative Technologies & Innovation, 4A's
THE BIG STORY: Does the rise of AI agents threaten the mobile app economy?
The rise of AI-powered agents is sparking predictions of a major paradigm shift in the mobile app economy, with some industry watchers forecasting the end of mobile apps. As AI agents become more capable, some wonder if users will eventually bypass apps altogether, opting instead to interact directly with a universal AI that manages everything from daily tasks to entertainment choices. AI agents are indeed changing the landscape, but is this truly a death knell for mobile apps, or simply another evolution?
The app economy has survived multiple waves of disruption, often emerging even stronger. When home screen widgets became available on both major mobile OS platforms, some predicted the decline of standalone apps in favor of widget-based interactions. Why would anyone open a discrete app when they can just get the information they need from the widget? What actually happened was that users embraced widgets, but apps remained fundamental to mobile experiences. Similarly, Apple’s App Tracking Transparency (ATT) shook the digital ad industry, causing revenue disruptions for mobile developers dependent on deterministically targeted advertising. But mobile app advertising revenue continues to grow overall.
As AI agents come to the fore, developers will need to adapt. The app economy is likely to transform but not disappear in the near term. Mobile ad models may need to evolve, forcing agencies and brands to shift strategies and rethink mobile engagement. A marriage of AI agents and apps may well empower agencies to offer seamless, multi-channel experiences that keep users engaged and deliver value across platforms. Much like previous challenges, the rise of AI agents is more likely to drive innovation than obsolescence.
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