Make short dramas with AI to cut costs, then spend the savings on ads

David Barnard… of the increase. So 21% year-over-year growth in non-game apps, which amounts to billions and billions of dollars. And so only three and a half billion of that according to Sensor Tower was attributed to generative AI. There was billions of increased revenue across movies and TV shows, billions in social media, billions in utilities. So it seemed like it was a pretty wide-ranging increase in revenue. It wasn't just concentrated in AI apps.

Olivia MooreAbsolutely, yeah. And I think that reflects the fact that there's been a lot of discussion of vibe coding, but it's very true that building and marketing a product is just getting a lot more efficient. And you're also able to bake in more features to products that using AI that make consumers more willing to pay for them. Maybe another example of a category that's not technically AI that saw a ton of growth is short dramas. Both in downloads and in revenue, they're making hundreds of millions of dollars now. And I personally have met several startups that are largely using AI to either fully generate or edit these short dramas, and so then they can make them at much lower cost and spend more on marketing to distribute them. And it's a very fascinating dynamic.

David BarnardYeah. The integration of AI and AI workflows into existing app is a fascinating aspect of this boom. But AI generative apps did make up a large share of that revenue. What do you think about that and how does that look going forward?