a16z Report Highlights Surge in AI-Driven App Development Amid Stagnant User Engagement

According to an a16z newsletter, AI code-generation tools have led to a 2x to 4x increase in new app releases across iOS, Android, and Chrome platforms. However, download volumes and user ratings remain stagnant, with a significant decline in the percentage of apps reaching basic success thresholds. The report describes this trend as 'App-Slop,' noting that US app revenue grew only 2% over the past 18 months despite a 7% increase in usage time.