Legendary Consumer VC Predicts The Future Of AI Products

The Adoption and Promise of Consumer AI 00:00

  • Early-stage founders often ask for winning marketing tactics, but the advice is to focus first on creating a product that people need
  • The adoption of AI by consumers is happening faster than previous tech cycles, driven by platforms like ChatGPT with hundreds of millions of daily users
  • AI platforms like ChatGPT feel natural and are quickly adopted because interacting via conversation mirrors fundamental human behaviors
  • The rapid success of OpenAI’s ChatGPT demonstrates an unprecedented consumer appetite for AI-driven experiences
  • The conversational nature of AI introduces a new paradigm, shifting from outcomes and attention (internet, mobile) to relationships and affection
  • Continuous memory and personalization in AI are seen as future unlocks, where the system can accumulate insights over time and use that for deeper engagement

Rethinking Consumer Experiences and AI Personalization 05:12

  • True breakthroughs will come from reimagining categories completely rather than simply layering AI onto existing products
  • AI enables products to live in a continuous learning loop, deepening personalization and mimicking the dynamic of human relationships
  • Voice-based interactions increase the richness and engagement of digital experiences, giving users the freedom to express and explore ideas naturally
  • Context-aware AI can summarize information and highlight what is most relevant to an individual user, making interactions more meaningful and tailored

The Messy Creative Stage of Consumer AI 11:05

  • The current phase of consumer AI is characterized by experimentation and diverse approaches, often resulting in a “messy” but creative period
  • Founders are encouraged to iterate quickly, try new ideas, and learn from user responses before settling on what truly resonates
  • Distribution is critical, but the foundation should be a core product that genuinely meets user needs

Lessons from Successful Consumer Brands 12:08

  • There is no single marketing hack; successful consumer brands leverage a mix of tactics and channels, crafted to suit each context and audience
  • The best marketing emerges from having a product that solves a genuine problem and that users love
  • Network effects and authentic, additive marketing strategies are more likely to succeed than gimmicks or short-lived tactics
  • Early novelty (such as viral videos or referral discounts) can drive initial growth but are rarely sustainable on their own
  • Being early in a new category, especially with AI, provides an advantage by capturing attention and delighting users before the market is saturated

Navigating Competition and Platform Shifts 17:23

  • Founders should recognize broader trends and shifts in consumer behavior, such as the rise in organic word-of-mouth (from 4% to 48% of sales for some CPG companies over five years)
  • Search, whether on retail or general web, is evolving rapidly as users expect more conversational interfaces; established brands are investing in AI-driven search tools

The Future of Monetization and Platform Dominance 22:06

  • OpenAI’s hiring of experienced product leaders signals a major focus on application development and monetization
  • Despite ChatGPT’s dominance, it’s expected that multiple platforms (Google, Perplexity, ChatGPT) will coexist, each serving different needs
  • Specialized experiences will persist as users seek category-specific interactions rather than a “do everything” interface
  • Advertising and search optimization dynamics are likely to evolve, with new forms such as sponsored outputs or paying to be included in training data considered

Health, Wellness, and Security as Key Trends 26:23

  • Recent tech trends highlight growing consumer focus on health, wellness, and personal (not national) security, including financial and career stability
  • The shift from reactive healthcare to proactive wellness is driven by dissatisfaction with traditional systems and enabled by more available health information and tools
  • Generative AI has the potential to provide deeply personalized health advice, acting as a “PhD and MD in your pocket”
  • Proliferation of advanced tools (e.g., concierge doctor-like services and GLP1s) is leading to new behaviors and secondary effects among users

Building the Next Wave of Consumer AI Products 32:17

  • Founders are advised to use platforms like ChatGPT as inspiration, but to move beyond generic chat interfaces toward truly differentiated experiences tailored to users’ lives
  • Thinking from first principles, leveraging new technology, and not just copying old paradigms is essential for real innovation
  • The most promising future products will build on AI’s strengths—memory, emotional intelligence, deep personalization—to foster genuine relationships and recurring engagement
  • New startups should address critical needs, provide clear benefits, and consider the “switching costs” for users integrating new products into their routines
  • Building in alignment with underlying AI platforms (rather than against them) is important for long-term success

Closing Thoughts and Advice for Founders 34:01

  • This is a unique moment for new entrants, as AI-enabled platforms allow for rapid experimentation and creativity
  • Emotional AI—products capable of building relationships and understanding context—represents a major emerging opportunity
  • Durability comes from solving real problems, not from hype or fleeting novelty
  • Boldness, first-principles thinking, and leveraging platform tailwinds are key strategies for building the next generation of consumer products