ChatGPT market share falls below 50% for first time

Many AI users may already have noticed the shift. ChatGPT, once widely regarded as the dominant force in generative AI, is now facing stronger competition as rival platforms improve their capabilities and build larger user bases.

According to Sensor Tower’s State of AI 2026 report, ChatGPT still holds the largest share of the AI assistant market, but its monthly-user share has gradually declined. By the end of May, ChatGPT’s share had fallen to 46.4%.

Gemini, which benefits from integration with Google’s wider ecosystem, has risen to 27.7%. Claude, known for productivity-focused use cases, has climbed to 10.3%. Other AI assistants, including Grok, Perplexity, DeepSeek and Meta AI, each hold less than 5% of the market.

Despite the decline in share, ChatGPT remains far ahead in user numbers. Reuters reported earlier this month that ChatGPT had reached 1 billion global monthly active app users, becoming the fastest app to hit the milestone, according to Sensor Tower estimates.

The changing market reflects several factors, including faster growth among competitors, users switching between AI assistants, and rising pressure on companies to convert large user bases into revenue.

Sensor Tower’s report also found that users are increasingly willing to switch between AI assistants. TechCrunch reported that OpenAI’s agreement with the US Department of Defense in February was followed by a measurable spike in uninstalls, suggesting that brand trust and values alignment may now influence user decisions alongside product features.

Another factor is monetisation. In the first half of 2026, AI apps are on track to record nearly 2.3 billion downloads and more than US$4.2 billion in user spending, up from US$1.83 billion in the first half of 2025, according to Sensor Tower estimates.

However, download and spending growth rates have begun to slow, suggesting that the market may be entering a more mature stage even as overall usage continues to expand.

Asia has also shown signs of softening. Sensor Tower data cited by TechCrunch showed Asia recorded its first download decline in the first quarter of 2026, falling 3.3%, driven by weaker downloads in China and India. The trend is partly linked to the rise of free or lower-cost AI models, particularly from China.

Claude stands out in terms of paid-user conversion. Around 13% of Anthropic’s users pay for a subscription plan, the highest conversion rate among major AI assistants, according to Sensor Tower data reported by TechCrunch.

The trend points to a new phase in the AI market. After years of racing to attract users, AI companies are now moving more aggressively towards monetisation through subscriptions, advertising, shopping integrations and premium features.

OpenAI has also begun experimenting with advertising inside ChatGPT. Sensor Tower data reported by TechCrunch indicated that by May, an average of 17% of daily users were being served ads, while software and shopping were among the largest advertiser categories on the platform.

As competition intensifies, users may increasingly see AI platforms used not only as assistants, but also as channels for selling products, recommending services and displaying advertising.