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Mobile App Usage to Drop By 25 Percent on AI Assistants- Study

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By 2027 mobile app usage will decrease by 25 per cent due to AI assistants, according to Gartner, Inc. Smartphone users will turn to AI assistants, such as Apple Intelligence, ChatGPT, Google Gemini, Meta AI, and others to replace apps for many functions.

Mobile App Usage to Drop By 25 Percent on AI Assistants- Study

In addition to the impact of AI assistants, apps will be consolidated across separate brands and companies, creating mobile app partnerships or consortiums to reach more users per app at scale and defray the cost of creation and maintenance.

“CMOs should begin scenario planning for the impacts of decreased mobile app usage,” said Emily Weiss, senior principal for the Gartner Marketing Practice.

“Brands with low app engagement and retention will likely be first impacted – this will be a positive development for brands that are not overly reliant on driving revenue via apps as app development costs will decrease.

Other brands may be severely impacted by the disintermediation of users turning to AI assistants for services.

The loss of app users will also result in the loss of first-party data collection and the ability to reach fewer users via mobile push notifications,” she added.

By 2026, over 1/3 of web content will be created for the purposes of Gen-AI powered search.

According to Gartner’s 2024 CMO Spend Survey of 395 respondents between February and March 2024, the average CMO allocated almost a quarter of their digital marketing budget to search.

Other than end users directly visiting a website, search currently drives more traffic to the average commercial enterprise website than any other referral source.

Given this, a loss of search driven traffic due to algorithmic shifts by major search engines would result in tangible, negative commercial impact to any organisation.

“CMOs will need to direct their teams to hire talent with a strong understanding of how GenAI, and broader AI influences, impacts the performance of their content in search algorithms,” said Weiss.

“It will be important to upskill the function by investing in search and content talent with AI skillsets. These associates will need to have familiarity with creating or optimising content to train and rank within evolving search algorithms,” Weiss added.

By 2028 digital marketers will move 30 per cent of their paid social budget to support advertising and partnerships on subscription-based channels.

It is becoming more challenging for CMOs to maintain, let alone grow, their reach and engagement among consumers.

This is especially true as consumers shift their tech and media behaviors away from social media, to other platforms and subscription based channels.

Gartner’s 2024 CMO Spend survey found that since 2022, paid social has maintained the highest budget allocation for all digital media spend.

In 2024, B2C Marketing leaders reported allocating 14.3 per cent for their digital channel budget to social media advertising (an increase from 12.3% in 2023).

“Closed group communities and subscription channels offer a potential alternative for social media weary consumers and content creators who want to do more than feed the algorithm,” said Weiss.

“Brands can leverage closed-group subscription channels – such as Substack, Patreon, and Discord – and the professional creators on them to reach relevant target audiences who are already engaging with content they self-selected into consuming.”

By 2027, 85 per cent of customer data will be xollected from automated interactions or those led by AI agents. Current AI models, such as large language models (LLMs), lack the agency to autonomously execute tasks and adapt in complex environments.

However, as new levels of intelligence are added, new AI agents are poised to quickly become more capable and reliable as brands seek to address customer facing use cases.

“There will be more AI agents than people, so while current approaches require humans in the loop, this idea will quickly become antiquated.

“Marketers will need to determine when and how they can trust AI agents to act on behalf of the brand and customers across key areas,” said Weiss.

 

 


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OpenAI CEO Rejects $97.4Bn Takeover Bid from Elon Musk

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Sam Altman, chief executive of ChatGPT-owner OpenAI
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Sam Altman, chief executive of ChatGPT-owner OpenAI, has firmly declared the company “not for sale” following a $97.4bn (£78.4bn) takeover bid from a consortium led by Elon Musk.

OpenAI CEO Rejects $97.4Bn Takeover Bid from Elon Musk

Elon Musk

Speaking at the AI Action Summit in Paris, Altman emphasised OpenAI’s mission to develop AGI (artificial general intelligence) for the benefit of humanity.

Marc Toberoff, attorney for Elon Musk, confirmed the bid submission on Monday.

In response, Altman humorously offered to buy Twitter for $9.74 billion on Musk’s platform.

Unlike many tech giants, OpenAI is not publicly traded but operates through a complex partnership between non-profit and for-profit entities.

Musk aims to return OpenAI to its non-profit roots, despite owning a rival firm, xAI.

Christie Pitts, a tech investor, expressed scepticism about Musk’s intentions, noting his competitive interests.

Altman echoed this sentiment, suggesting Musk’s move disregards OpenAI’s mission.

Altman, who holds no stock in OpenAI, advocates transforming the organisation into a fully for-profit company to raise more funds for AI research.

Although the board has the final say, the $97.4bn offer falls short of OpenAI’s previous $157bn valuation and rumoured $300bn in future funding talks.

Toberoff stated the consortium might increase their bid. Meanwhile, OpenAI is collaborating with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund on “The Stargate Project,” a $500 billion AI infrastructure initiative announced by President Donald Trump.

 

 

 

 


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Adobe Launches AI Video Tool to Compete with OpenAI

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Adobe yesterday released the first public version of an artificial intelligence tool that can generate video clips and revealed how much it will charge, but said it will not set pricing for major users such as studios until later this year.

The Firefly Video Model, as Adobe is calling the service, will compete against Sora, a model developed by ChatGPT creator OpenAI, and startup Runway, both of which currently offer video-generation services. Facebook owner Meta Platforms has also developed a video-generation AI model but has not given a timeline for when it will be released.

Adobe’s model differs from its rivals because it is geared toward generating clips that will fit into how film and television studios use Premiere Pro, its flagship video editing software.

To that end, many of the features that Adobe is emphasizing revolve around feeding existing shots into the video model and asking it to generate clips that fix or expand on shots that were taken on a real production set but that did not come out quite right.

Adobe said the service will generate five-second clips at 1080p resolution. While that is shorter than the clips of up to 20 seconds generated by OpenAI’s service, Adobe executives said the majority of individual clips in most productions are only three seconds.

Adobe said a user can generate 20 clips per month for $9.99 and 70 clips for $29.99. That compares with 50 videos for $20 per month with OpenAI’s plan at lower resolution and a $200 OpenAI plan that can handle longer, higher resolution videos.

Adobe is also working on a “Premium” pricing plan for studios and other high-volume video users and will release those pricing details later this year. Alexandru Costin, Adobe’s vice president of generative AI, said the company is working to generate 4K video and will remain focused on quality rather than longer clips.

“We actually think that great motion, great structure, great definition scheme, making the actual clip look like it was film, is more important than making a longer clip that’s unusable,” Costin told Reuters.

 


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GSMA Launches Innovation Fund to Boost AI Solutions in Emerging Markets

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GSMA Innovation Fund for Impactful AI has been unveiled, marking a significant initiative aimed at empowering small and growing enterprises in low-and middle-income countries (LMICs) across Africa, South Asia, Southeast Asia, and the Pacific.

GSMA Launches Innovation Fund to Boost AI Solutions in Emerging Markets

This fund is designed to fos­ter AI-driven innovations that tackle critical socio-economic and climate challenges, helping underserved regions unlock the transformative potential of ar­tificial intelligence.

Artificial intelligence has proven its ability to address pressing global issues, from pre­cision agriculture and renew­able energy to remote health­care and financial inclusion.

Yet, LMICs remain under­served in funding and resourc­es, with only a small percentage of global grants directed toward locally-developed AI solutions.

Despite the growth of AI-driven technologies, these advancements are often not tailored to the unique needs of local populations in LMICs.

The GSMA Innovation Fund seeks to close this gap by iden­tifying, testing, and scaling impactful AI solutions that are contextually relevant and capa­ble of delivering measurable socio-economic and climate benefits.

In partnership with the UK Foreign, Commonwealth, and Development Office (FCDO), the GSMA Innovation Fund provides a comprehensive sup­port package to selected enter­prises. Key benefits include:

Grant Funding: Ranging from £100,000 to £250,000 for projects lasting 15–18 months.

Tailored Venture Support: Guidance to strengthen busi­ness models and improve scal­ability.

Partnership Opportunities: Facilitation of collaborations with mobile operators, public sector organizations, and other stakeholders.

Peer Learning: Platforms for exchanging knowledge and best practices with other innovators.

Visibility and Exposure: Access to GSMA’s global events, publications, and online plat­forms to connect with potential investors and partners.

 


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