4A's Noteworthy News - 25th Edition
THE BIG STORY:
Does the rise of AI agents threaten the mobile app economy?
The rise of AI-powered agents is sparking predictions of a major paradigm shift in the mobile app economy, with some industry watchers forecasting the end of mobile apps. As AI agents become more capable, some wonder if users will eventually bypass apps altogether, opting instead to interact directly with a universal AI that manages everything from daily tasks to entertainment choices. AI agents are indeed changing the landscape, but is this truly a death knell for mobile apps, or simply another evolution?
The app economy has survived multiple waves of disruption, often emerging even stronger. When home screen widgets became available on both major mobile OS platforms, some predicted the decline of standalone apps in favor of widget-based interactions. Why would anyone open a discrete app when they can just get the information they need from the widget? What actually happened was that users embraced widgets, but apps remained fundamental to mobile experiences. Similarly, Apple’s App Tracking Transparency (ATT) shook the digital ad industry, causing revenue disruptions for mobile developers dependent on deterministically targeted advertising. But mobile app advertising revenue continues to grow overall.
As AI agents come to the fore, developers will need to adapt. The app economy is likely to transform but not disappear in the near term. Mobile ad models may need to evolve, forcing agencies and brands to shift strategies and rethink mobile engagement. A marriage of AI agents and apps may well empower agencies to offer seamless, multi-channel experiences that keep users engaged and deliver value across platforms. Much like previous challenges, the rise of AI agents is more likely to drive innovation than obsolescence.
To dive deeper, check out the following:
At least one player in the app economy is seeing strong growth
OTHER INTERESTING AI NEWS FOR AGENCIES
Netflix on the AI Game Board: Netflix AI exec sees big impact for its gaming division. Read more
Related, the Oasis Model Launches: A new AI model to watch. Dubbed "Oasis," this model promises fully playable games with minimal inputs. See details
Gartner’s Prediction on AI Agents: AI agents may transform work, but disillusionment is growing. Get the forecast
McKinsey’s Marketing Makeover: McKinsey suggests a new approach to marketing ops, now driven by AI insights. Learn how
Microsoft’s Copilot Updates: Fresh features for Microsoft Copilot aim to streamline office and ad workflows even further. Check out the updates
AI in Sales? HBR Explores the Debate: A Harvard Business Review case study weighs the pros and cons of deploying an AI-powered salesbot. Get the case study
Ziff Davis and AI Data Usage: Publishers and AI companies collide over training data; Ziff Davis shares its stance. Read more
AI tools in focus: AdAge rounds up 9 tools agencies are leaning in to. Learn more.
Anthropic’s New Pricing for Claude: Anthropic raises Claude’s prices, attributing it to enhanced intelligence—raising eyebrows. Find out why
An AI Marketing Glossary from AdAge: Essential terms for brands to stay on top of the AI game. Study up
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Haleon recently launched an AI-powered Health Inclusivity Screener aimed at making health advertising more accessible and inclusive.
To promote VENOM: The last Dance, Sony Pictures Entertainment partnered with Trigger XR to enable users to see what their pet would look like bonded with venom.
Code And Theory Unveils AI-Driven 'Anticipatory' Graphics Tool
