AI-powered apps can make money, but struggle with long-term retention, new data shows

AI-powered subscription apps convert trial users to paid customers 52% better than non-AI apps and generate higher monthly revenue, but they struggle significantly with long-term user retention. Data from RevenueCat analyzing over 1 billion transactions shows AI apps lose annual subscribers 30% faster than traditional apps, with only 21.1% retention after 12 months compared to 30.7% for non-AI apps. AI apps also have 20% higher refund rates, suggesting users often find they don't meet expectations despite the initial appeal.