As AI lowers the bar for new apps, savvy startups shift to web-to-app model

In a market that’s growing tougher by the day, apps are fighting hard for relevance when AI is lowering the barrier of entry by orders of magnitude. After a few challenging years, key players are finding their own winning playbook to stay ahead and are setting the gold standard for the industry.

Léa Samrani, VP of Product at Passion.io, offers insights into what the near future holds for the app industry and how app developers and creators turning towards apps can make the most of opportunities, even in the midst of a changing market. Samrani has well over a decade of experience growing top-grossing apps like Bumble, Badoo, Busuu, and Uptime.

AI is changing the stakes: Like most industries, AI is sweeping in as a disrupting force. App companies are already feeling the pressure from AI’s impact. "Competition is going to get intense," Samrani says. "I don’t think AI is quite there yet, but it’s going to get there fast. What that means is that more and more people will be able to launch apps, which will make the market even more crowded."

Lower bar: As technology advances, launching an app has become easier than ever, meaning the focus now shifts to factors like product quality, value, delivery channels, and brand presence. "In a world where the barrier to entry is the lowest it’s ever been, brand and distribution channels are what will make the difference," she says. While the opportunities for new entrants are within reach, the challenge of standing out remains a hurdle.

Fighting App Store fees: While the challenges are clear, opportunities abound as well. One area of growth is the shift from native app stores to web-based models offering similar services to the App Store but at a lower cost. "We’re seeing a lot of apps moving to web-to-app flows to avoid paying high App Store fees," Samrani explains.

Creator boom: Smaller publishers, in particular, are expected to feel the pressure. "Small publishers are going to struggle to get the brand awareness or the delivery channel that will make their app stand out," Samrani warns. This is where the creator-led industry could have an edge. According to Samrani, creators who already have a built-in audience and a unique voice are in a prime position to thrive in this environment. "The creator-led industry is going to boom," she predicts. "Creators have the space, the voice, and the audience to cut through the noise."

Challenges at hand: Looking back at the past few years, Samrani acknowledges that the app market has faced a series of difficulties. "The cost of acquisition has increased, new privacy rules have made optimization harder, and the fundraising market hasn’t been kind to subscription apps," she notes. These factors have placed additional pressure on app developers to find new ways to grow and sustain their businesses.

In response, many companies have turned their focus inward, concentrating on optimizing their monetization strategies, improving user retention, and refining their activation funnels. "It’s always been important, but in the last few years, it has been more critical than ever before," Samrani says, emphasizing the need for businesses to get more out of their existing user base.

Differentiation is key: As the app industry braces for a future of fierce competition and rapid technological change, one thing is certain: differentiation will be key. Apps will need to carve out unique identities through strong branding, creator-driven presence, and effective distribution channels. "It’s going to be very challenging," Samrani concludes. "But I think we’re going to see some big changes in the app industry in the next couple of years."