A16z’s Olivia Moore on the state of consumer AI
techcrunch ·
Olivia Moore, a partner at Andreessen Horowitz, argues that the current pessimism surrounding consumer AI economics overlooks significant opportunities for growth. While OpenAI has shifted focus toward enterprise clients, Moore views this as an expansion rather than a retreat from the consumer market. She suggests that the industry should move away from relying solely on subscriptions and token usage, which currently dominate revenue streams. Instead, Moore advocates for ad-supported models to make AI accessible to the broader population without upfront costs. The marginal cost of AI services remains high compared to traditional internet platforms, but cheaper open-source models are beginning to address this issue. Moore notes that many so-called consumer AI tools are actually 'prosumer' applications used for technical automation and productivity. Furthermore, she highlights that major categories such as social media, dating, and finance remain largely untouched by AI entrants in her recent top 100 report. Ultimately, Moore believes it is still very early days for true consumer AI adoption.
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