Predictions for the Digital Economy in 2026

2025 was an exciting year for the digital economy. Generative AI continued its record-breaking ascent, retail media cemented itself as a core channel for digital advertisers, and the gaming sphere achieved billions of new downloads. With the new year rapidly encroaching, it’s time to look forward to the trends we expect to see in 2026. We took expert analysis, grounded in real data, and turned it into a shiny new report: Predictions for the Digital Economy in 2026. 

Dive right in here, or continue reading for a preview of the insights: 

Prediction 1: Generative AI apps will earn more than $10 Billion in 2026

From wellness to retail and everything in between, AI apps across genres have been proliferating massively, approaching four billion downloads in 2025 alone. In the coming year, we expect to see in-app purchase (IAP) revenue for these titles exceed $10 billion — and for ChatGPT to become the top-earning app. 

• Inside the report: Use an interactive graph to compare Gen AI to other top genres across revenue, downloads, and time spent. Find out which apps are being replaced in the rankings by ChatGPT’s meteoric rise. 

Prediction 2: Vertical video will spur app growth — led by Short Drama

An intriguing new app genre has emerged to battle OTT for the most popular form of digital entertainment streaming: Short Drama. Downloads, IAP revenue, and time spent have increased consistently for the genre since 2023, and its download market share compared to OTT surged to 43% last year. In 2026, we expect to see this upward trajectory continue, with Short Drama downloads even likely to surpass those of OTT Streaming. 

• Inside the report: Dive into exact performance metrics for both genres over the past few years to see the gains and losses. Learn how Meta is contributing to time spent on short video across social networks. 

Prediction 3: Gen AI will rival paid advertising for driving website traffic

Referrals from Gen AI have entered the scene as a crucial new traffic source for brands to compete for. While it presently makes up only a small portion of overall website traffic, that number is growing. In October of 2025, 37% of top websites received more Gen AI traffic than traffic from paid efforts. Next year we expect to see the source take up an even larger share of website visits, as brands figure out the best way to optimize their content for LLMs. 

• Inside the report: Compare incremental growth rates of Gen AI vs. paid traffic, and discover the top websites receiving AI referrals. 

Download the full report today to unlock 20+ pages of cutting edge insights and dynamic charts, built on comprehensive, real-time Sensor Tower data. Take some time explore the rest of the predictions we’re looking forward to in 2026 — rest assured, your strategy will benefit.