VCs discuss why most consumer AI startups still lack staying power (techcrunch.com)

Despite the initial excitement surrounding consumer AI applications, experts from a recent TechCrunch event reveal that most AI startups continue to thrive by targeting business customers rather than individual consumers. Chi-Hua Chien of Goodwater Capital highlighted that while early generative AI offerings in areas like video and audio drew interest, many opportunities dwindled as advancements, particularly from the Chinese market, rapidly integrated these features into existing platforms. Chien compared the current state of consumer AI to the early smartphone era, suggesting that a period of stabilization is needed before truly game-changing applications emerge. Looking ahead, both Chien and Elizabeth Weil from Scribble Ventures suggested that consumer AI products may require more than just advancements in mobile technology. They speculate that the next breakthrough might hinge on a new type of device that leverages AI's full capabilities, moving beyond the limitations of smartphones. While innovative concepts—like customizable personal financial advisors or always-on tutors—are on the horizon, skepticism remains regarding AI-driven social networks, as the intrinsic value of human interaction in social media may not translate well into a single-player experience dominated by bots. Overall, the AI landscape appears poised for significant evolution, but a clear path to sustainable consumer engagement remains uncertain.