AI bots are reshaping the internet as human traffic loses dominance: Report

by Hansraj Agrawal | Jun 19, 2026 | Technology

For years, the internet was built around humans and their searches. That is beginning to change.

According to Cloudflare’s Radar – a free, publicly accessible internet observability platform – bots now account for 57.5 per cent of global web requests, compared with 42.5 per cent generated by humans. Cloudflare co-founder and chief executive officer Matthew Prince on June 3, 2026 said this marks the first time in the internet’s history that bots have overtaken human traffic — a milestone he had expected to arrive in 2027.

At first glance, the figure may sound like a story about spam or malicious automation. But Cloudflare’s data points to something broader. Not all bots are harmful or invisible scripts. A growing share now performs useful, structured tasks across the internet, including retrieving information, comparing options and assisting users through AI-powered systems.

The shift signals a structural change in how the web is being used. Increasingly, bots are no longer just background infrastructure. They are becoming active participants in how information is discovered and consumed.

Not all bots are the same

Bots are not new to the internet.

For years, search engines have relied on crawlers to index websites. Monitoring tools have checked uptime, while security systems have scanned infrastructure. These automated processes have always accounted for a significant share of internet traffic. What is changing today is the composition of that traffic.

According to content delivery network provider Fastly, bots broadly fall into different categories based on their functions. To understand the shift, it helps to distinguish between three increasingly important groups:

AI crawlers: These systems systematically scan websites and collect information that can later be used for indexing or training large language models. Their behaviour resembles traditional search-engine crawlers, although their purpose now extends beyond search.

AI fetchers: Fastly describes these as systems that retrieve information in response to specific user requests. When someone asks an AI assistant a question requiring current information, these bots may visit websites to collect relevant data such as prices, availability or facts before generating a response.

AI agents: Cloudflare points to these as emerging systems capable of performing multi-step tasks on behalf of users, such as comparing flights, checking product prices, summarising information across websites or completing basic online actions.

Together, these categories are creating a rapidly growing layer of automated activity across the internet.

Why bot traffic is rising

The growth in bot traffic is closely linked to the rise of AI assistants that increasingly interact with the web.

Tools such as ChatGPT, Gemini, Claude and Perplexity are not limited to pre-trained information. In many cases, they retrieve information from the internet in real time, combining data from multiple sources before presenting a response.

This represents a significant shift in how information is accessed online.

Traditionally, search engines functioned as discovery tools. Users entered a query, received a list of links and visited websites to find answers. AI-powered systems increasingly function as answer engines. Instead of directing users to multiple pages, they gather information in the background, process it and return a consolidated response.

Fastly’s data illustrates how quickly this layer is expanding. Between January and May 2026, AI-related bot requests on its network rose around 30 per cent — roughly 6.5 times faster than human traffic over the same period. The company also reported that Claude-related traffic increased more than 555 per cent compared with its January baseline.

This does not mean AI bots dominate the internet on their own. Cloudflare’s figure refers to overall bot activity, which includes many forms of automation. However, AI-related bots are increasingly becoming an important driver of growth within that broader category.

Bots behave differently from humans

One reason bot traffic matters is that bots do not behave like human users. Human activity follows predictable rhythms. Usage rises during waking hours, follows work schedules and fluctuates across weekdays and weekends. Bots operate continuously. Fastly found that crawler activity remains largely steady throughout the day. These systems do not sleep, pause or wait for peak usage periods. They continuously scan, collect and synchronise information across the web.

Bots also interact with infrastructure differently.

According to Fastly, fewer than 9 per cent of human requests on its network require direct access to origin servers, where website data is stored. By contrast, more than 51 per cent of bot-related requests require direct origin access.

This is because bots often seek fresh, real-time information, including updated prices, inventory levels, breaking news and changing documentation, which cannot always be served from cached copies.

For businesses, this means bot traffic is not just growing in volume. It is also increasing infrastructure demand.

Why publishers are paying attention

The rise of bots that retrieve and synthesise information is reshaping the relationship between publishers and platforms. For years, publishers relied on search engines for distribution. Search engines crawled websites, indexed pages and directed users back to original sources. Traffic and advertising revenue flowed back to publishers in exchange for discoverability.

That model is now under pressure.

AI-powered systems such as Google’s AI Overviews, ChatGPT and Perplexity increasingly combine information from multiple sources and present it directly to users. Instead of visiting individual websites, users often receive complete answers within a single interface.

This has contributed to what many describe as a “zero-click internet”, where content is consumed without users visiting the original source.

The issue has become significant enough to attract regulatory attention.

The UK’s Competition and Markets Authority recently instructed Google to provide publishers with greater control over whether their content is used in AI-powered search features. Google has since begun testing controls that allow publishers to opt out of certain AI experiences while remaining visible in traditional search results.

At the centre of the debate is a fundamental question: if bots increasingly retrieve and summarise content on behalf of users, how should the value created by publishers be distributed?

Ecommerce is facing a similar shift

The impact of rising bot traffic is not limited to publishing. In ecommerce, bots are increasingly involved in how products are discovered and compared. Cloudflare notes that many AI-powered bots already perform tasks such as reading product pages, checking prices, comparing options and summarising information for users. At the same time, technology companies are building systems that formalise this behaviour.

OpenAI has expanded shopping-related capabilities within ChatGPT, allowing users to conduct product research and comparisons through conversational queries.

Google is also investing in what it describes as agentic commerce, where AI systems actively assist users in evaluating products and services. The company outlined aspects of this vision during its recent Google I/O conference.

The implication is a shift in how shopping begins.

Instead of manually browsing multiple websites, users may increasingly rely on bots to handle the initial stages of discovery and comparison. Retailers may therefore need to optimise not only for human shoppers but also for the AI systems influencing what users ultimately see and choose.

For years, retailers competed for visibility on search engines and marketplaces. In a more agent-driven internet, they may also need to compete for visibility within AI systems that recommend products on behalf of users.

The customer may still be human, but the browsing, comparison and evaluation process could increasingly be performed by machines.

A new phase of the internet

The significance of Cloudflare’s data is not simply that bots now outnumber humans in web requests. It is what those bots are doing.

Some continue to perform traditional functions such as crawling and monitoring. Others are increasingly retrieving real-time information, answering questions and assisting users with tasks across the web.

Humans remain central to the internet economy. People still create content, make decisions, consume entertainment and drive demand.

But the path between users and websites is changing.

For decades, the internet was primarily a space where people visited websites directly to find information. Increasingly, that process is being mediated by bots that browse, retrieve and summarise information on their behalf.

The internet is not becoming less human. But it is becoming far less direct.

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Amaravati Quantum Valley hits historic quantum hardware milestone at -269°C

by Hansraj Agrawal | Jun 19, 2026 | Technology

In a historic milestone for India’s quantum computing hardware ecosystem, Amaravati Quantum Valley (AQV) has successfully achieved 4 Kelvin, or minus 269 degrees Celsius, using an indigenous dilution refrigerator at the Quantum Reference Facility in Medha Towers, Amaravati.

This is among the coldest temperatures ever achieved in a research facility in India. The achievement marks one of the most significant advances yet in India’s efforts to build a complete homegrown quantum technology ecosystem.

It represents a major step towards the vision of Atmanirbhar Bharat in frontier technologies and positions India among the countries developing critical quantum hardware capabilities indigenously. The milestone also strengthens the vision of making Andhra Pradesh a global hub for advanced technologies.

The journey began in September 2025 when scientists, researchers, startups and industry leaders met Chief Minister N Chandrababu Naidu and presented an assessment showing that nearly 85 per cent of the components required for quantum computing infrastructure could potentially be developed within India.

Recognising the scale of the opportunity, the government and Information Technology Minister Nara Lokesh called for the creation of a complete indigenous quantum hardware ecosystem and articulated a vision of “Made in Amaravati for the World”.

To transform that vision into reality, Amaravati Quantum Valley partnered with Qbit Force and Qubitech to map India’s quantum hardware supply chain and identify opportunities for indigenous development, particularly in cryogenic technologies, which form the backbone of advanced quantum computing infrastructure.

In April 2026, this effort led to the establishment of India’s first Quantum Reference Facilities at Medha Towers, Amaravati, and SRM University AP.

These facilities were created to provide startups, researchers, academic institutions, national laboratories and industry partners with access to advanced testing and validation infrastructure for quantum hardware developed in India.

The Quantum Reference Facility serves as a national testbed and validation platform for quantum technologies. It enables the development, integration, testing and validation of critical components across cryogenic systems, vacuum engineering, control electronics, processor technologies and quantum control systems.

Several indigenous technologies, including precision power supplies, quantum control software, electronic modules and other critical hardware components, are already being evaluated and validated on the platform.

The successful achievement of 4 Kelvin represents the first major technical milestone from this national initiative.

Operating at 4 Kelvin enables testing and characterisation of superconducting devices, quantum sensors, cryogenic electronics, single-photon detectors, microwave systems, quantum communication components and advanced quantum materials.

These technologies are the essential building blocks of future quantum computers, secure communication systems, advanced sensing platforms and next-generation scientific innovation.

“This milestone establishes a critical national capability for quantum hardware testing and demonstrates India’s growing strength in advanced cryogenic engineering. It also sends a powerful message that world-class quantum infrastructure can be designed, built and operated in India,” a statement said.

The system will now continue cooling towards ultra-low millikelvin temperatures required for advanced superconducting quantum computing applications.

Achieving these temperatures will unlock the next phase of quantum hardware testing and pave the way for future quantum processor development in India.

The facility will continue to support collaborative research, startup innovation, prototype development and talent creation for years to come.

“From identifying indigenous capabilities, to establishing India’s first Quantum Reference Facilities, to now achieving the 4 Kelvin milestone, Amaravati Quantum Valley is steadily building the foundation for India’s quantum hardware future,” the statement added.

The Amaravati Quantum Valley Testbed is now open for collaboration. Startups, research laboratories, universities and companies working on quantum components, devices and systems are invited to bring their technologies to Amaravati, test them in India’s first indigenous cryogenic quantum facility, accelerate development cycles and help build the next generation of quantum technologies.

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AI accelerating projects, clearing work backlogs: Deutsche Bank executive

by Hansraj Agrawal | Jun 19, 2026 | Technology

Artificial intelligence is accelerating productivity at Deutsche Bank, enabling tasks that once took years to be completed within months, a senior executive said on Thursday.

The German lender is using AI to speed up technology projects and tackle a backlog of internal work, but ‌it is keeping a wary eye on rising computing costs.

“We’re seeing things that were two years that are now getting done in three to six months… we know the productivity is there,” said Denis Roux, chief information officer, investment bank at Deutsche Bank, speaking on the sidelines of the bank’s Bank on Tech event in Bengaluru, India. He declined to quantify the impact.

Backlogs that once took months are now being cleared in weeks, Roux said, adding, “All I’m hoping to do is use these tools to continue to make things more efficient.”

The bank has around 9,000 employees ‌in its technology function in India, accounting for about 45 per cent of its global tech workforce. Global firms are increasingly using their Indian hubs for higher-value functions, including finance, software development and R&D.

Still, managing the cost of AI adoption is a priority as providers move to usage-based pricing models, Roux said, likening it to the discipline companies developed during their move to cloud computing.

AI firms such as Anthropic and OpenAI are increasingly shifting to token-based pricing that charges customers based on usage, instead of a subscription-based service.

Engineers at Deutsche ‌Bank are allocated quotas for tokens and can request additional capacity but have to demonstrate value, with learnings then shared across the organisation, Roux said.

“We monitor the usage ‌patterns… we don’t want to slow people down and want them to keep going, but ‌we also want to get a return,” he said.

The bank is also developing AI tools to automate tasks like extracting and analysing financial data, as well as applications ‌that link external events such as geopolitical or market developments to its portfolio to understand exposure.

Roux said the bank remains cautious about deploying AI for everything, using simpler models ‌for routine tasks and also assessing where traditional solutions may be more effective.

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Employers seek adaptable workers as AI reshapes entry-level jobs: Study

by Hansraj Agrawal | Jun 18, 2026 | Technology

Artificial intelligence (AI) is rapidly rewriting the rules of hiring, workforce development and career progression, with AI already performing nearly one-third of all entry-level tasks and fundamentally reshaping what employers expect from new recruits, according to a new global study by Cognizant and Pearson.

The report, The AI Workforce Pulse: The Adaptability Imperative, released on Thursday, said organisations are prioritising adaptability, AI fluency, critical thinking and human-centric skills over traditional technical expertise. It was prepared following a survey of 750 senior human resources (HR) professionals across India, the United States and the United Kingdom.

The study found that 37 per cent of entry-level tasks in India are already performed by AI, compared with a global average of 33 per cent, while 18 per cent of HR professionals reported that AI now handles half or more of the entry-level work that previously defined a first job.

The transformation is expected to accelerate rapidly over the coming years, with 96 per cent of HR leaders predicting that entry-level roles will evolve into positions where employees primarily supervise, manage and validate AI systems rather than perform routine operational tasks themselves.

Despite concerns that AI could eliminate entry-level opportunities, the survey painted a more nuanced picture. Nearly 94 per cent of respondents believe AI will create entirely new entry-level roles that do not currently exist, while 85 per cent continue to regard entry-level positions as essential for building future leadership pipelines.

According to the report, the nature of these jobs is changing rather than disappearing, with young employees expected to oversee AI-generated outputs, validate machine decisions, interpret results and intervene when human judgment is required.

“India is at the forefront of how AI is transforming entry-level work, with organisations already embedding AI into day-to-day operations at scale. We are seeing a fundamental redesign of roles, where early-career talent is expected to work alongside AI and focus on higher-value outcomes,” said Rajesh Varrier, president, Global Operations, and chairman and managing director, Cognizant India.

One of the most significant shifts highlighted by the study is the growing importance of AI literacy beyond technology-focused occupations. An overwhelming 98 per cent of HR professionals said they now place greater emphasis on AI fluency when recruiting for traditionally non-technical roles such as marketing, legal services and operations.

The findings suggested that familiarity with AI tools is becoming a baseline workplace competency across sectors, much like digital literacy became indispensable in earlier decades. At the same time, employers are valuing distinctly human capabilities that complement rather than compete with AI.

The report found that 97 per cent of HR professionals believe soft skills have become more important in the age of rapid AI advancement. Communication, ethical reasoning, judgment, creativity and the ability to navigate ambiguity are emerging as critical differentiators in the labour market as machines assume a larger share of technical execution and repetitive tasks.

Similarly, 67 per cent of HR professionals indicated that they value liberal arts graduates more than they did previously, while 69 per cent expressed a preference for candidates with broad or interdisciplinary educational backgrounds over those with highly specialised academic training.

“Nearly 64 per cent of organisations reported placing a higher premium on the ability to identify new problems and develop innovative solutions than on solving familiar problems using established methods. The future workforce will need to excel not only in technical competence but also in problem framing, strategic thinking and intellectual agility,” the report said.

The study also highlighted a widening gap between the demand for AI skills and organisations’ ability to develop them internally. More than 91 per cent of HR professionals reported a sharp increase in employee demand for AI training over the past year. However, 60 per cent acknowledged that their learning and development programmes are struggling to keep pace with the speed at which AI is transforming job roles and workplace requirements.

Only 54 per cent of organisations surveyed said they are proactively preparing employees for future AI-driven role changes, while the remaining 46 per cent continue to address skill shortages reactively after gaps become apparent. The report warned that such an approach risks leaving companies perpetually behind the curve in a rapidly evolving labour market.

The shortage of AI-ready talent is already being felt across industries, with around two-thirds of HR professionals reporting difficulties in finding workers with appropriate AI skills. Another major finding of the study concerns the evolving role of middle managers, a layer of management often viewed as vulnerable to automation and organisational restructuring.

Contrary to expectations, the survey found that middle managers may become even more critical in AI-enabled workplaces. As routine supervisory and coordination tasks are being automated, managers are expected to focus on coaching, contextual decision-making, mentoring and helping teams integrate AI into everyday workflows.

As many as 95 per cent of HR leaders identified middle managers as crucial to ensuring employees use AI effectively, while 92 per cent said they are essential in redefining job roles as AI transforms day-to-day work. In addition, 97 per cent of organisations reported actively planning to redesign roles in response to AI-driven changes, placing middle managers at the centre of workforce transformation efforts.

“AI is reshaping the talent landscape and exposing the limits of traditional talent and learning models,” said Kathy Diaz, chief people officer, Cognizant. “With the fundamental shift in entry-level tasks and skill requirements changing rapidly, organisations must rethink how they hire and develop talent at pace,” Diaz added.

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Sony Bravia 3 II review: A TV that is smooth, natural and easy to live with

by Hansraj Agrawal | Jun 18, 2026 | Technology

There’s a very specific moment with the Sony Bravia 3 II. It doesn’t happen when you turn it on. It doesn’t happen when you scroll through menus or play your first video either. In fact, if you’re expecting that instant “wow” moment, you might actually be a little underwhelmed at first. And then, somewhere between watching a couple of episodes, switching between apps, maybe catching a cricket match or two, it just settles in.

You stop noticing the TV.

And that’s kind of the whole story here.

I’ve been using the 55-inch model, and it comes with a 4K 120Hz panel, powered by Sony’s XR Processor. On paper, that seems like a standard Bravia set-up, but that’s a fairly solid upgrade as Sony has typically reserved the XR Processor for more premium variants.

The experience

The first thing you realise is that this TV doesn’t try to impress with extremes. It doesn’t push brightness too hard, it doesn’t oversaturate colours, and it doesn’t sharpen everything to the point where it starts looking artificial. Instead, it just makes things look right.

Skin tones are probably the easiest way to notice this. They don’t shift wildly depending on the content. You don’t get that slightly orange or overly pink tint that some TVs lean towards. Greens don’t glow unnaturally, and blues don’t feel exaggerated. It’s a very controlled image, and that restraint is what makes it work.

A lot of that comes down to Sony’s XR Processor. It’s constantly working in the background, adjusting contrast, cleaning up noise, improving clarity. But the important part is that it doesn’t feel like it’s doing too much.

You also get XR Triluminos Pro, which helps expand the colour range. In practice, this shows up as better colour gradation and more controlled tones rather than overly saturated output. It complements the overall tuning rather than trying to change the character of the image.

But the result holds up even when the content doesn’t.

Streaming something that isn’t perfectly mastered, watching older videos, even random YouTube content, it all looks better than it should. Not dramatically better, but enough that you notice the difference after a while.

Then there’s the variable refresh rate that can oscillate between 60Hz and 120Hz depending on what’s on the screen. This is one of those upgrades that sounds bigger on paper than it feels in the first few minutes. But over time, you do notice the effect.

Quickly sliding through menus feels smooth. Scrolling feels more fluid. Fast-moving scenes don’t break apart as easily, and there’s a general sense of stability in motion that you don’t get on a panel with standard refresh rate.

It’s not trying to create that hyper-smooth, almost artificial motion effect. It just keeps things from falling apart, which honestly matters more.

But then you start watching something darker.

And this is where the Bravia 3 II reminds you of what it is.

Because this is still not a mini LED or OLED TV, there is no local dimming here. So blacks don’t really get that deep. In a well-lit room, it’s not a big deal. But in a darker setting, you start noticing that shadows don’t have the same depth. They look a little lifted, a little flatter than you would like.

In terms of format support, the TV covers all the essentials, HDR10, HLG, and Dolby Vision.

Dolby Vision content especially benefits from Sony’s processing, even if the panel itself isn’t the brightest in its class. You still get a more balanced image rather than something that feels aggressively tuned.

Put this TV in a normal living room, turn on the lights, and suddenly it makes a lot more sense.

SDR content looks great. Colours are accurate. It’s bright enough to handle everyday viewing, even if reflections can be an issue if you have a window right opposite the screen.

This is one of those TVs that feels more comfortable with real-world usage rather than perfect home theatre conditions.

Where things get more interesting again is gaming.

This 55-inch model supports HDMI 2.1 with 4K at 120Hz, along with auto low latency mode which kicks in automatically when you start playing. So if you connect a console, especially a PS5, it actually feels like a proper gaming setup. Motion stays smooth, input lag is low, and you don’t run into the usual issues like screen tearing.

There’s also a dedicated game menu, which offers some really interesting tools. This includes a Crosshair overlay that adds a permanent targeting reticle in the middle of your screen. While most shooting games have this built-in, it comes in handy in RPG games as you will already know where to aim even before you pull out your weapon.

There is also a Black Equalizer that adjusts the brightness in shadows to help you see enemies hiding in dark areas without over-brightening the rest of the screen.

Audio is another one of those areas where the TV quietly does enough.

The speakers here are better than you’d expect. Sony has tuned them to reduce distortion and improve clarity, and you can hear that. Dialogue is clear, and there’s enough presence to not immediately reach for a soundbar.

You also get Dolby Atmos and DTS support, which adds a bit more depth to the overall experience. You still benefit from a soundbar, obviously, but you don’t feel forced into getting one immediately.

And then there’s everything else.

Google TV is exactly what you’d expect. Apps are all there, navigation is simple, recommendations are decent. It works with Chromecast, AirPlay 2, voice assistants, and smart home devices. It’s the kind of system you don’t have to think about.

Even smaller things like the remote design, the overall UI flow, the way settings are organised, they all lean towards making the experience feel easy rather than feature-heavy.

Which brings us back to that original point.

Verdict

This TV doesn’t try to stand out in obvious ways. It’s not the brightest. It doesn’t have the deepest blacks. It doesn’t give you that immediate “this is amazing” reaction. But over time, it becomes very easy to live with.

The 120Hz panel and XR processing make a real difference in motion and overall consistency. Everyday content looks natural, smooth, and easy on the eyes. At the same time, the limitations are clear. Dark content performance is not its strength, and HDR doesn’t have the kind of impact you get from higher-end panels.

But if your usage is mostly regular streaming, sports, and mixed content in a typical living room setup, this TV makes a lot of sense.

Price: Rs 149,900 onwards

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AI becomes top growth driver as non-gaming apps overtake gaming: Report

by Hansraj Agrawal | Jun 18, 2026 | Technology

Consumers worldwide spent $167 billion on in-app purchases (IAPs) in 2025, equivalent to roughly $318,000 every minute. According to Sensor Tower’s State of Mobile 2026 report, this spending was broadly split between non-gaming applications and games.

Of the total, non-gaming apps accounted for $85.6 billion, while games generated $81.8 billion. Generative artificial intelligence (AI) applications emerged as the biggest growth driver within the non-gaming category.

What is an in-app purchase and why does it matter

An in-app purchase is any digital item, feature or service that users buy within an application after downloading it. These purchases can range from game skins, battle passes and virtual currencies to AI subscriptions, cloud-storage upgrades, premium streaming plans and productivity tools.

Unlike traditional software, where users paid a one-time fee upfront, IAPs allow developers to generate recurring revenue by offering additional content, services and features over time.

The model has become a cornerstone of the mobile economy because it shifts the focus from acquiring new users to generating greater value from existing ones. It has also transformed how applications are designed and monetised, allowing companies to offer products free initially before encouraging users to pay for premium experiences, exclusive content or added convenience.

AI apps lead non-gaming revenue growth

Global IAP revenue from non-gaming apps rose from $70.5 billion in 2024 to $85.6 billion in 2025, representing 21 per cent year-on-year growth.

Of the roughly $15 billion increase:

Generative AI apps contributed $3.5 billion

Movies and TV applications added $2.2 billion

Social media apps contributed $2.1 billion

Utility applications generated $1.8 billion

Multimedia and design software accounted for $1.4 billion

According to Sensor Tower’s report, ChatGPT dominated the AI category, both in terms of usage and revenue generation.

Of the $3.5 billion in additional IAP revenue generated by generative AI applications, approximately $3.4 billion came from ChatGPT alone.

Where does India stand?

India is emerging as one of the fastest-growing markets for generative AI applications.

According to the report, downloads of generative AI apps in India nearly tripled in 2025 compared with 2024. As usage rises, opportunities for monetisation increase as well.

Indian consumers spent $14.2 million on IAPs in generative AI applications in 2024. In 2025, that figure rose to $48.4 million, representing a 3.4-fold increase in a single year.

The trend suggests that Indian users are not only adopting AI rapidly but are also increasingly willing to pay for premium AI capabilities.

What is driving the growth?

One of the biggest drivers appears to be the industry’s shift beyond text generation into image and video creation.

In 2025, companies such as OpenAI and Google turned visual-content generation into a major battleground. Features such as ChatGPT’s GPT-4o image generation and Google’s Nano Banana model attracted millions of users.

These tools provided consumers with clearer reasons to subscribe, whether for creating AI-generated images, editing visuals or producing social-media content.

The launches were supported by extensive marketing campaigns and app-store promotions highlighting practical use cases, helping convert curiosity into paying customers.

If adoption continues to rise and usage increasingly translates into subscriptions and purchases, revenue growth could accelerate further in the coming years.

Beyond AI: Where else are users spending?

Movie and TV applications generate IAP revenue primarily through subscriptions, rentals and content purchases.

For social-media platforms, spending is largely driven by premium memberships and subscription services.

Utility applications monetise through premium features, ad-free experiences, cloud-storage plans and subscriptions. Google One is a prominent example.

Multimedia and design software, such as Filmora, generate revenue through digital add-ons, premium tools and advanced editing features purchased within the app.

Gaming shifts from acquisition to retention

The gaming industry saw a different trend in 2025.

According to Sensor Tower, global gaming revenue continued to grow for a third consecutive year, but downloads declined and user engagement remained broadly stable.

As a result, gaming companies increasingly focused on retaining existing users rather than acquiring new ones.

Developers relied more heavily on battle passes, virtual goods, premium content and re-engagement campaigns to maximise the lifetime value of existing players.

Global mobile game downloads fell from 53.4 billion in 2024 to 50.4 billion in 2025.

IAP revenue, however, rose modestly from $80.7 billion to $81.8 billion.

Which games generated the most revenue?

While casual and mid-core games continued to generate the highest IAP revenue globally, hybrid casual games emerged as one of the strongest growth categories.

The category recorded sharp revenue growth despite declining downloads, suggesting developers were becoming more effective at converting existing users into paying customers.

Hypercasual games were the only segment to record download growth in 2025. Titles such as Block Blast! and Mahjong Vita demonstrated that simple gameplay experiences continue to attract large audiences.

At the genre level, strategy games delivered the strongest revenue gains globally. They were also the only genre to record download growth across both Asia and Europe.

Puzzle games posted strong revenue growth in Europe, driven by titles such as Royal Match and Gossip Harbor. Meanwhile, shooter games gained momentum in Asia following launches such as Delta Force.

India’s gaming market

India largely mirrored global trends.

Mobile game downloads declined from 8.4 billion in 2024 to 8.18 billion in 2025. Despite the decline, IAP revenue increased from $339 million to $389 million.

Hypercasual games generated the highest number of downloads, while mid-core games remained the largest revenue category.

In 2025:

Hypercasual games recorded 4.07 billion downloads

Casual games recorded 2.3 billion downloads

Hybrid casual games recorded 1.04 billion downloads

Mid-core games recorded 613 million downloads

Revenue remained concentrated in mid-core titles, which generated $252 million in IAP revenue, followed by casual games at $125 million and hybrid casual games at $9.6 million.

What do the numbers suggest?

The data points to a broader shift in the mobile economy.

Whether it is a ChatGPT subscription, a premium productivity feature, a gaming battle pass or a cosmetic skin, consumers are becoming increasingly comfortable spending money on digital products and experiences.

Importantly, this shift is no longer confined to gaming.

For years, game developers refined strategies for monetising virtual goods and retaining users. Today, AI applications, streaming platforms, social-media services and productivity tools are adopting similar approaches.

The result is an app economy where success depends less on attracting millions of new users and more on convincing existing users that digital products are worth paying for.

As generative AI, subscriptions and premium digital services continue to evolve, the distinction between how gaming and non-gaming applications generate revenue is becoming increasingly blurred.

The $167 billion spent on in-app purchases in 2025 suggests consumers have already embraced that shift, and developers are likely to build further on it in the years ahead.

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