Despite the three-year surge in generative AI technology, the majority of AI startups continue to thrive by catering to businesses rather than individual consumers.
While general-purpose LLMs like ChatGPT have been embraced by consumers, specialized consumer applications of GenAI have yet to gain traction.
Chi-Hua Chien, co-founder of Goodwater Capital, noted at TechCrunch’s event that early AI applications in video, audio, and photo were impressive, but lost momentum with the introduction of new models like Sora and Nano Banana. He compared this phenomenon to the integration of the flashlight app into iOS following the iPhone’s launch.
Chien emphasized the need for AI platforms to stabilize before groundbreaking consumer products can flourish, drawing parallels to the growth of mobile apps like Uber and Airbnb in the late 2000s.
Elizabeth Weil from Scribble Ventures echoed Chien’s sentiments, describing the current state of consumer AI as an “awkward teenage middle ground.” She hinted at the potential for new devices beyond smartphones to drive the evolution of consumer AI products.
Both Chien and Weil highlighted the limitations of smartphones for fully utilizing AI capabilities, suggesting that a new personal device may be necessary for innovative AI applications to thrive.
While some companies are exploring screenless, wearable devices like Meta’s Ray-Ban smart glasses, others are experimenting with AI-powered accessories such as pins, pendants, and rings.
Chien proposed the idea of a personalized AI financial adviser, while Weil envisioned an “always-on” tutor delivered directly through smartphones as potential consumer AI offerings.
Despite their optimism about AI’s potential, both experts expressed doubts about the effectiveness of AI-powered social network startups that rely heavily on AI bots for user interactions, questioning the authenticity of such platforms compared to traditional social networking experiences.
