Generative AI is no longer just a buzzword—it’s becoming the backbone of a new wave of mobile apps. According to AppGrowing, active AI app campaigns jumped 20% from Q1 to Q4 2024, marking a clear acceleration in the space.
As global competition heats up, Southeast Asia is gaining traction as a growth frontier. One standout is Vietnam’s XTECH, which made generative AI its strategic focus in 2024 and recently launched its flagship photo app, PixArt.
In this exclusive interview, AppGrowing talks with XTECH’s CMO Minh Chau Pham and CGO The Anh Tran about the evolving role of generative AI in mobile, and how they’re building for both local users and global ambitions.
The following is the edited transcript of the interview：
To start, could you briefly introduce Xtech to our readers?
CHAU: Established just last year, Xtech is a technology company dedicated to creating human-centric tech solutions. We've achieved early success with our health and utility apps.
This year, we're focusing on generative AI, launching products like an AI photo generator and an AI-powered home decoration app, expanding our offerings while maintaining our commitment to user-friendly innovation.
When did Xtech begin focusing on generative AI, and what opportunities did you identify in this space?
CHAU: We started exploring AI products at the end of last year, recognizing the explosive growth and demand in the generative AI category. What stood out to us was that while the trend was taking off, there were still relatively few strong players in AI products—especially in photo generators.
The creativity, personalization, and fun that AI photo tools offer made us optimistic about their viral and commercial potential. There’s a huge opportunity here—not just in art and entertainment, but in how people express identity and culture visually.
Beyond Vietnam, which regional markets are you prioritizing, and how do they differ from your home market?
THE ANH: Beside the local market, we’re focusing on Southeast Asia, North America and Europe. We’ve discussed mainland China but, due to strict regulations, fragmented app stores, and entrenched local giants like Tencent and ByteDance, we’ve decided to prioritize other regions for now.
Compared to Vietnam’s young, experimental audience and early-stage monetization, these markets feature mature payment habits, higher advertising costs, and more demanding localization requirements—so we’re tailoring our go-to-market strategy accordingly.
What inspired the development of PixArt? What sets it apart from other AI photo generator apps on the market?
THE ANH: We started with a simple insight: people crave fast, fun, personalized images without needing design skills. So we built a mobile-first app with a lightweight model that lets users generate high-quality photos in seconds.
But speed isn’t enough. We spent months fine-tuning our engine on regional aesthetics, so a filter in India feels distinctly different from one in the US. And instead of typing out detailed text prompts word by word, we built a one-tap preset gallery: you pick a style and watch your photo transform instantly.
Behind the scenes, our automated pipeline enabling new effects and filters roll out faster, while a smart on-cloud balance keeps performance smooth and server costs under control. We’ve also built in ethical safeguards—watermarks, content filters and clear policies—plus end-to-end localization of UI text and ad creatives. The result? A blend of speed, cultural resonance and trust that truly sets us apart.
In your view, what is the biggest challenge in launching a generative AI photo app today?
THE ANH: Honestly, the toughest part is cutting through the noise: with dozens of apps promising AI magic, acquiring users profitably and keeping them engaged is brutal. High marketing costs, rapid feature parity among competitors, and fickle user trends mean you have to constantly innovate—both in tech and UX—while controlling CPI.
On top of that, ethical and data-privacy concerns add layers of complexity. Balancing these demands—standing out, controlling costs, and moving faster than the competition—is really the toughest hill to climb.
With AI technology evolving rapidly, which directions is Xtech paying close attention to?
THE ANH: The pace of change is just incredible.Definitely on-device AI and model optimization. Making these powerful models smaller, faster, and more efficient without sacrificing quality is a huge focus. The more we can do directly on the user's phone, the better the experience – faster results, better privacy.
Then there's everything happening with multimodal AI. The idea of models that can seamlessly understand and generate content across text, images, video, and even audio is mind-blowing. Imagine being able to describe a scene and not only get a picture but a short video clip with an accompanying soundtrack. That's the kind of stuff that gets us really excited about future possibilities.
And, of course, ethical AI and responsible development isn't just a buzzword for us; it's foundational. So, we're constantly tracking new techniques for bias detection and mitigation, content sources, and creating safer AI systems.
How have third-party tools like AppGrowing helped you optimize your UA performance?
CHAU: We use AppGrowing daily as a core part of our user acquisition strategy. It helps us stay on top of market trends and closely monitor competitor activity, especially in terms of creative strategy. One of the key features we rely on is tracking ad creatives—what formats competitors are using, what messages are resonating, and how trends evolve over time.
In terms of metrics, we pay close attention to impressions, active days, and especially the Active Index, which gives a strong signal of how well a creative is performing over time—not just in reach but in sustained effectiveness. This helps us prioritize concepts with long-term potential.
We also closely monitor channel allocation. Understanding where our competitors are putting their budget—whether it’s Meta, TikTok, Google, or other networks—helps us benchmark our own strategy. For example, if we see a shift in channel focus for a certain geo or season, we can adjust quickly and test new placements before the market gets saturated.
Finally, we use AppGrowing’s Holiday calendar to plan timely, localized creatives, especially for markets with unique holidays or cultural events. It’s a key tool that supports both our marketing and product localization strategies.
Finally, we would like to express our sincere thanks to XTECH for participating in this interview. We warmly invite more developers to join the conversation—so together, we can drive the industry forward.
