VCs Discuss Why Most Consumer AI Startups Lack Staying Power
Although consumers quickly adopted general-purpose LLMs like ChatGPT, most specialized consumer GenAI applications have yet to resonate.
However, Chi-Hua Chien, co-founder and managing partner at Goodwater Capital, believes that AI platforms need a similar period of “stabilization” for lasting AI consumer products to flourish.
Meanwhile, Elizabeth Weil, founder and partner at Scribble Ventures, echoed Chien’s sentiment, describing the current state of consumer AI applications as being in an “awkward teenage middle ground.”
The Need for a New Device
Chien argued that a smartphone may be too limiting for reimagining consumer AI products in large part because it is not ambient.
Consequently, startups and incumbent tech companies have been racing to build a new personal device that can supplant smartphones.
In addition, Weil anticipates that a personalized, “always-on” tutor will become ubiquitous, with its specialized tutelage delivered directly from a smartphone.
The Future of Consumer AI
However, not every AI consumer product will be dependent on a new device, according to Chien.
Moreover, Weil expressed skepticism about the emergence of several, still-stealthy AI-powered social network startups.
Therefore, Chien suggested that one such offering could be a personal AI financial adviser customized to the user’s specific needs.
Conclusion
Though excited by AI’s potential, Weil and Chien expressed skepticism about the emergence of several, still-stealthy AI-powered social network startups.
However, they remain optimistic about the future of consumer AI, citing the potential for new devices and applications to revolutionize the industry.
Source: Link
