a16z’s Olivia Moore on the state of consumer AI

Olivia Moore, partner at Andreessen Horowitz, discusses the current state and future potential of consumer AI. Despite recent shifts by OpenAI towards enterprise, Moore sees consumer AI as an expanding field with opportunities beyond subscription and API revenue models, such as ad-supported free access. She highlights improvements in lowering AI service costs through cheaper models and open-source developments. Moore notes that much of what is considered consumer AI is actually prosumer, catering to technical automation categories like product-building, marketing, and work management. Surprisingly, key consumer areas like social, dating, retail, and health remain largely untouched by AI, signaling early days for true consumer AI innovation and market expansion.