As recently as January, OpenAI’s chatbot had more than a 50 percent market share, but that has now reportedly fallen to 46.4 percent.
The report revealed that ChatGPT has more than 1.1 billion users globally
Photo Credit: Reuters
ChatGPT continues to be the world's most popular artificial intelligence (AI) assistant, but it now faces intense competition in the generative AI space. According to a recent market analysis, the AI chatbot's market share has slipped below the 50 percent mark for the first time since its launch in late 2022. The report mentions that users are increasingly looking towards rival AI apps like Gemini, Claude, and Grok. The move reportedly indicates a shift in consumer behaviour, with external events affecting user loyalty.
Digital intelligence and market research firm Sensor Tower recently published its State of AI Report 2026, which revealed ChatGPT has more than 1.1 billion users globally (via Reuters). It is claimed to be the fastest app to reach this milestone, leading the AI assistant market by a considerable margin. It is followed by Gemini with 662 million monthly users, while Anthropic's Claude came in third with a 245 million user base.
However, the tide is changing. As recently as January, OpenAI's chatbot had more than a 50 percent market share, but that has now reportedly fallen to 46.4 percent. The report claims that users are becoming more willing to switch between assistants depending on their needs. Despite ChatGPT benefiting from being the pioneer in the AI chatbot space, other companies are offering promising solutions, too.
Citing an example, the analysis revealed that Gemini is taking advantage of Google's deep ecosystem of products and services, while Anthropic's Claude is becoming increasingly popular among professionals and enterprise users due to its productivity-focused capabilities and strong user retention.
Sensor Tower also found that external events can influence user behaviour. The report mentions OpenAI experienced a measurable rise in uninstall activity after its partnership announcement with the US Department of Defense earlier this year.
Subscriptions, meanwhile, were reported to be another key area where competition is intensifying. Anthropic reportedly leads the market when it comes to paid user conversion. The analysis found that approximately 13 percent of Claude users are subscribing to premium plans.
On the larger scale, the AI app market is expanding rapidly. The report estimates that consumers are on track to download nearly 2.3 billion AI apps and spend more than $4.2 billion (roughly Rs. 39,700 crore) on them during the first half of 2026, a substantial increase from last year's figure of $1.83 billion (roughly Rs. 17,300 crore).
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